Mexican baker completes Canadian purchase
Monday it had completed a previously announced acquisition of the
US baking unit of Canada's George Weston for $610 million
(E702.5m), Reuters reports.
Mexico's Grupo Bimbo, the world's number three bread-maker, said on Monday it had completed a previously announced acquisition of the US baking unit of Canada's George Weston for $610 million (E702.5m), Reuters reports.
Under terms of the deal announced on 22 January, Bimbo will add brands such as Entenmann's cakes and Thomas' English muffins to its stable. Bimbo will take over five Oroweat production facilities with a licence to make and sell the Oroweat range of breads and Entenmann's cakes in the Western region of the United States.
The deal also gives Bimbo distribution rights for the Thomas' brand of English muffins and waffles and the Boboli brand of pizza crusts. Both are made by George Weston at its US plants but Bimbo will now distribute them in 23 western US states.
"Payment was made today (on Monday) after obtaining a bridge loan from Bank of America, Citibank, ING Bank and JP Morgan Chase Bank," Bimbo said in a statement.
Bimbo has its own US operations, based primarily in California and Texas. The company bought Texas-based Mrs. Baird's Bakeries in 1998.
