MONTREAL, CANADA
Mexico's Grupo Bimbo SAB de CV has reached an agreement with Saputo Inc. to purchase the company's Canadian bakery division for C$120 million ($103.38 million).
According to Reuters, the deal includes the acquisiton of a Canadian manufacturing facility in Quebec which is primarily responsible for the production of snack cakes.
Bimbo shares it is anticipating additional annual sales exceeding C$130 million ($111.87 million) stemming from this agreement, which is expected to close in Q1 2015 pending approval by Canada's Competition Bureau. In fiscal 2014, the division earned C$139 million in revenue, accounting for less than 2% of Saputo's consolidated revenues, according to Reuters.
Stay tuned to DeliMarket TV for more updates on this ongoing purchase as they develop.
