Grupo Bimbo finalizes acquisition of East Balt

by Eric Schroeder
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East Balt Bakeries
East Balt produces and supplies buns, English muffins, rolls, tortillas, bagels, artisanal bread and other baked foods to quick-service restaurants.
 

MEXICO CITY — Grupo Bimbo S.A.B. de C.V. on Oct. 16 said it has completed the acquisition of Chicago-based East Balt Bakeries from One Equity Partners for $650 million.

Founded in 1955, East Balt produces and supplies buns, English muffins, rolls, tortillas, bagels, artisanal bread and other baked foods to quick-service restaurants around the world. The company employs approximately 2,200 and operates 21 baking plants in 11 countries across the United States, Europe, Asia, the Middle East and Africa. The company generated sales of approximately $420 million and EBITDA of $70 million in the most recent fiscal year.

Daniel Servitje, Bimbo
Daniel Servitje, chairman and c.e.o. of Grupo Bimbo

“East Balt Bakeries brings us a talented team of professionals with great experience in the food service industry,” said Daniel Servitje, chairman and chief executive officer of Grupo Bimbo. “Our entry into eight new countries represents an important step in achieving our vision of transforming the baking industry and expanding our global leadership to better serve more consumers. We warmly welcome all our new East Balt associates to the Grupo Bimbo family and look forward to working together within our new division: Bimbo QSR.”

Diego Gaxiola, Grupo Bimbo
Diego Gaxiola, c.f.o. of Grupo Bimbo
Diego Gaxiola, chief financial officer of Grupo Bimbo, added, “The integration of East Balt helps drive forward our value creation objectives, as the approximate 3% and 5% annualized increase in group sales and EBITDA translates directly into accretive margins, earnings per share and profitability. To fund the transaction, we are drawing down an existing committed long-term revolving credit facility and utilizing part of the resources obtained from the recent local bond issuance: BIMBO17. This strategy preserves the company’s financial flexibility and healthy credit profile.” 
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