MEXICO CITY — Grupo Bimbo S.A.B. de C.V., through its Canada Bread Co., Ltd., subsidiary, has completed its acquisition of Saputo Bakery Inc., a subsidiary of Saputo Inc., for C$120 million ($103 million). The transaction first was announced on Dec. 18, 2014.
The Bakery Division produces, markets and distributes mainly snack cakes in Canada, which are sold almost exclusively in the retail market. It is the largest manufacturer of snack cakes in Canada and also sells, on a small scale, in the United States. The Bakery Division operates one manufacturing plant located in the province of Quebec and employs 642 employees.
In fiscal 2014, the Bakery Division had approximately C$139 million in revenues and represented less than 2% of Saputo's consolidated revenues.
The acquisition is expected to position Canada Bread for further growth in the country, complementing its current product portfolio, distribution network and manufacturing facilities. Headquartered in Etobicoke, Ont., Canada Bread produces and distributes packaged fresh bread and bakery products. The company operates 16 bakeries and employs approximately 3,800 people across Canada, and serves major grocery chains, retail outlets and food service operations. Canada Bread was acquired earlier this year by Grupo Bimbo in a transaction valued at $1,663 million.For many years, Canada Bread was a competitor with Saputo in the snack cakes segment, but Canada Bread stepped back from the category with the closing of its Shawinigan, Que., bakery in May 2013. The Shawinigan bakery produced a variety of snack cakes under the Chevalier, Cadbury and Obsession brands.