Mexico City, Mexico — Mexico’s largest baking empire, Grupo Bimbo, has purchased another US baking company making it the sixth such agreement.
Daniel Servitje Montull, Chairman of Grupo Bimbo, explained that as a way to expand its global reach the company has purchased US bakery, East Balt Bakeries for $650 million.
“This acquisition drives Bimbo’s growth strategy to expand our global leadership and serve better and more consumers. East Balt enjoys long-standing strategic relationships with the largest and most established brands in the world. We look forward to East Balt employees soon joining Grupo Bimbo’s family to continue growing in a joint way,” Servitje said.
Chief Financial Officer for Grupo Bimbo said the company will finance the purchase with a long-term line of credit. The transaction is expected to be completed during the second half of 2017.
Chicago-based East Balt said that selling to Grupo Bimbo is an “excellent fit” since “Grupo Bimbo’s demonstrated commitment to the bakery category, complementary global footprint and unique asset base provides a strong platform to support customer’s needs.”
East Balt was founded in 1955 and produces and provides products including bagels, biscuits, English muffins, tortillas and breads in the U.S., Europe, Asia, the Middle East and Africa.
Grupo Bimbo was co-founded in 1945 and became a multinational corporation with 170 factories in 22 countries. Over the years, Groupo Bimbo has made other acquisition purchases including Entemann’s, Thomas’ English Muffins, Arnold, Nature’s Harvest Bread and Sara Lee. Their US headquarters are in Philadelphia.