Grupo Bimbo Completes and Closes Weston Foods, Inc. Acquisition
This transaction is the most important 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 furthered that goal by demonstrating a commitment and dedication to serving our consumers and customers in the most effective way possible.
23/01/09 Grupo Bimbo, S.A.B. de C.V. announced the completion of its acquisition of the U.S. fresh bakery business of Weston Foods, Inc. (WFI) from Dunedin Holdings S.a r.l., a subsidiary of Toronto-based George Weston Limited, and the separate acquisition of related financial assets. The acquisition was announced on December 10, 2008 and has received necessary regulatory approvals.
The two transactions were valued at $2,380 million and $125 million, respectively. The combined $2,505 million payment was made through $2,300 million in financing and the Company's existing cash holdings.
"This transaction is the most important 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 furthered that goal 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.
The company's U.S. operations, Bimbo Bakeries USA (BBU), will be the largest baked-goods company in the U.S. BBU will be the leading U.S. producer and marketer of a wide variety of baked goods including bread, buns, sweet baked goods and cakes with bakeries nationwide. BBU's premium portfolio of brands will include ARNOLD, BIMBO, BOBOLI, BROWNBERRY, ENTENMANN'S, FRANCISCO, FREIHOFER'S, MARINELA, MRS BAIRD'S, OROWEAT, STROEHMANN, THOMAS' and TIA ROSA.
BBU will employ over 15,000 associates, operate 35 plants and distribute its products through more than 7,000 routes.
