Grupo Bimbo to acquire Weston Foods, Inc., creating one of The Leaders in the U.S. Baking Industry
Grupo Bimbo, S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) today announced it has signed an agreement to acquire the U.S. fresh bakery business1 of Weston Foods, Inc. (WFI) from Dunedin Holdings S.à r.l., a subsidiary of Toronto-based George Weston Limited (TSX: WN) for US$2,380 million.
This acquisition encompasses a premium brand portfolio in the fresh-baked bread, rolls, muffins, bagels and sweet baked goods categories, including brands such as ARNOLD®, BOBOLI®, BROWNBERRY®, ENTENMANN’S®, FREIHOFER’S®, STROEHMANN® and THOMAS’®, as well as 22 bakeries and more than 4,000 distribution routes.
WFI’s management team has significant industry experience and leads more than 8,000 associates. Their business model, with a focus on growth and profitability, generates strong and consistent financial performance. For the last twelve months ending October 4, 2008, WFI generated US$2,197 million in sales and approximately US$275 million in adjusted EBITDA2, representing an industry-leading margin of approximately 12.5%.
“This transaction is the most important one in Grupo Bimbo’s history and one of the largest in the bread industry. Size alone, however, is not our main objective. Rather, our vision is to become the best baking company, and we further that goal today by demonstrating a commitment and dedication to serving our consumers and customers in the most effective way possible,” said Daniel Servitje, Chief Executive Officer of Grupo Bimbo.
W. Galen Weston, Chairman and President of George Weston Limited, added: “We are very proud of the business that our associates at Weston Foods have created. As a leading international baker, we believe Grupo Bimbo will be an excellent steward of this exceptional business. ”WFI’s business, based primarily on the East Coast, will geographically and commercially complement Grupo Bimbo’s existing operations, reunite the brand portfolio following Grupo Bimbo’s acquisition of George Weston’s Western U.S. baking business in 2002, an create a national platform on which to forge stronger partnerships with national retailers.
