Industry News

Grupo Bimbo Acquires Canada Bread

February 12, 2014
/ Print / Reprints /
ShareMore
/ Text Size+

Maple Leaf Foods Inc., Canada, announced that Grupo Bimbo, S.A.B. de C.V. of Mexico agreed to acquire all of the issued and outstanding common shares of Canada Bread Co. Ltd. for aggregate cash proceeds of $1.83 billion or $72 per share pursuant to an arrangement agreement entered into between Canada Bread and Grupo Bimbo. Maple Leaf currently holds approximately 90% of the outstanding shares of Canada Bread and agreed to vote all of such shares in favor of the transaction.

"This transaction maximizes the value of our investment in Canada Bread and focuses Maple Leaf on building its leadership in the consumer packaged meats business," says Michael McCain, president and CEO. "Grupo Bimbo is an excellent company with strong values and a global leadership position with little overlap in our geographic markets. This makes for a highly complementary fit with our bakery operations, and is expected to provide exciting opportunities for Canada Bread employees, customers and other business partners."

"Upon completion of our prepared meats strategy at the end of 2014, Maple Leaf intends to capitalize on its state-of-the-art network, market-leading brands and a strong balance sheet to build on our position as Canada's leading consumer packaged meats company, both within and beyond our borders," McCain adds.

Maple Leaf is in the final phase of implementing a strategy to significantly increase productivity and profitability in its prepared meats business through establishing a low-cost, highly efficient manufacturing and distribution network. The company entered the peak phase of completing this strategy. Coupled with poor protein market conditions, this network transition significantly impacted earnings in 2013 and particularly in the fourth quarter. Once execution of this strategy is completed, involving closing down six older facilities, Maple Leaf expects to realize significant benefits from increased productivity and lower overhead and operating costs.

Did you enjoy this article? Click here to subscribe to Refrigerated & Frozen Foods magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

OSI, 2014 Refrigerated Foods Processor of the Year

Find out how this global food provider secured a new supply chain global trading platform, opened a new culinary innovation center and continues to keep food safety top of mind.

Read cover story here.
Read plant story here.

7/31/14 12:00 pm EDT

Engaging the Manufacturing Workforce to Drive Business Improvement

AIOE’s Workforce Development Solutions Group will soon release its work product, “The Engagement Framework”. This is a robust resource tool that both CPGs and suppliers should find useful in their organizations. Attendees will learn of the key attributes of Engagement, and cases and lessons learned on how to apply these guiding lessons within your company. The value proposition is fundamental to business success in our industry: business performance, competitive globally, recruitment and retention.

Processors On The Rise...

What aspects of an up-and-coming company are most important for it to become successful in the cold food marketplace?
View Results Poll Archive

Refrigerated and Frozen Foods Magazine

CoverImage

2014 July

Refrigerated & Frozen Foods' July 2014 issue features the State of the Industry report.

Table Of Contents Subscribe

The Refrigerated and Frozen Food Store

July 2013 Cold Packaging Materials Guide
Cold Packaging Materials Guide

A guide to cold packaging containers and materials.

More Products

Refrigerated & Frozen Foods Delivers

RFF Infographic 133x133Click here to see a snapshot of the many different ways Refrigerated & Frozen Foods delivers business and technology solutions to cold chain professionals.

Buyer's Guide

Visit our Buyer's Guide!

Refrigerated & Frozen Foods offers a Cold Packaging Materials Guide, as well as a Cold Storage Warehouse Guide, the most comprehensive listing of cold storage warehouses.

Visit the Buyer's Guide page today!

STAY CONNECTED

facebook_2014 twitter_40px youtube_40pxlinkedin_40px