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Grupo Bimbo to acquire East Balt Bakeries for $650m

FBR Staff Writer Published 24 July 2017

Mexican bread maker Grupo Bimbo has agreed to acquire US-based East Balt Bakeries from One Equity Partners in a $650m cash and debt free transaction.

The acquisition is expected to take Grupo Bimbo’s global growth strategy forward in high-growth segments and markets.

East Balt produces and supplies buns, English muffins, bagels, rolls, tortillas, artisanal breads among other baked goods. It primarily supplies the baked items to Quick Service Restaurants (QSR) across the world.

Grupo Bimbo board chairman and CEO Daniel Servitje said: “East Balt brings significant expertise, a remarkable track record of profitable growth, and a geographically diverse and highly scalable platform in the foodservice segment, complementing our current business within this channel.

“This acquisition continues to fulfill our vision of expanding our global reach to better serve more consumers, with entry to eight new countries. Notably, East Balt enjoys long-standing strategic relationships, with the largest and most established QSR brands in the world.”

Headquartered in Chicago, East Balt which was founded in 1955 runs 21 bakeries across 11 countries in the US, Asia, Europe, Africa and the Middle East alongside two joint ventures.

East Balt which has a workforce of around 2,200 employees had reported annual sales of about $420m.

Its daily production is about 13 million baked goods which are distributed close to 10,000 locations.

The acquisition has been approved by the board of directors of both Grupo Bimbo and East Balt.

East Balt CEO Mark Bendix said: “The combination between East Balt and Grupo Bimbo provides exceptional new business opportunities – including broad product capabilities, custom sandwich carriers in the Foodservice channel and expanded global reach.”

Subject to the meeting of customary closing conditions which include receipt of regulatory approvals, the transaction is expected to be completed in the second half of the year.

Image: Grupo Bimbo headquarters in Mexico City, Mexico. Photo: courtesy of Truffle123/Commons.wikipedia.org.