Grupo Bimbo, by all accounts, is a global leader among baking companies with a presence in Mexico, Central America, Latin America, Asia, Europe, and the United States. It extended that footprint to Canada on February 12, 2014, by striking a deal to acquire Canada Bread which is based in Toronto and owned 90% by Maple Leaf Foods. The acquisition includes purchase of the baking company for $1.83 billion CAD ($1.67 billion USD) which represents a price of $72 Canadian dollars per share. On Wednesday, announcement of the agreement and investor support boosted Canada Bread (CBY) shares up 7.3 percent on the Toronto Stock Exchange.
Canada Bread is a leading manufacturer of flour-based products including fresh bread products, frozen par-baked and baked products, and specialty pasta foods. It has operations in the United Kingdom, the United States, and Canada, and it has more than 8,000 employees. Grupo Bimbo may be most readily recognized in North America for its ‘Bimbo-labelled’ bread and sweet goods, like pound cakes, muffins, donuts, sweet rolls, and pastries. The company produces a number of other well-known brands of bread products, such as Sara Lee, Thomas’ English muffins, and Entenmann’s baked goods. The acquisition is another example of an emerging markets company making moves in the developed world.