The previously announced $1.83 billion acquisition of Canada Bread Co Ltd (TSX: CBY) by Mexican bread maker Grupo Bimbo has been approved by Canadian and U.S. regulatory agencies and is likely to close before the end of May. Based in Toronto, Canada Bread is a manufacturer of value-added flour-based products, and 90% owned by Maple Leaf Foods Inc (TSX: MFI). Maple Leaf is a portfolio investment of Canadian private investment firm West Face Capital.
Grupo Bimbo Receives Approval under Investment Canada Act to Acquire Canada Bread
TORONTO, May 13, 2014 /CNW/ – Maple Leaf Foods Inc. (MFI:TSX) (“Maple Leaf” or the “Company”) today announced that Grupo Bimbo, S.A.B. de C.V. of Mexico (“Grupo Bimbo”) has received approval under the Investment Canada Act to proceed with the acquisition of Canada Bread Company, Limited (“Canada Bread”).
The transaction has previously received shareholder approval and clearance under the Competition Act (Canada) and the Hart-Scott-Rodino Act (USA). The transaction is expected to close on May 23, 2014. Maple Leaf will realize aggregate cash proceeds of $1.65 billion or $72.00 per share for its 90% ownership of the outstanding shares of Canada Bread, plus a stub period dividend of $0.437 per share if the transaction closes as expected on May 23, 2014.
“We are very pleased that his transaction has satisfied all regulatory reviews,” said Michael H. McCain, President and Chief Executive Officer. “The sale to Grupo Bimbo will provide an exciting future for our bakery business and enable Maple Leaf to focus on accelerating profitable growth in the consumer packaged meats business, supported by leading brands, market shares and significant financial strength.”
About Maple Leaf
Maple Leaf Foods Inc. is a leading food processing company, headquartered in Toronto, Canada. The Company employs approximately 18,000 people at its operations across Canada and in the United States, the United Kingdom, and Asia.
About Canada Bread
Canada Bread is a leading manufacturer and marketer of value-added flour based products, including fresh bread, rolls, bagels, and frozen partially baked or par-baked breads and bagels. Canada Bread is 90% owned by Maple Leaf and its common shares are listed on the Toronto Stock Exchange under the ticker symbol CBY.
About Grupo Bimbo
Grupo Bimbo is one of the largest baking companies in the world in terms of production and sales volume. As the market leader in the Americas, Grupo Bimbo has 144 plants and more than 1,600 distribution centers strategically located in 19 countries throughout the Americas, Europe and Asia. Its main product lines include sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, among others. Grupo Bimbo produces over 10,000 products and has one of the most extensive direct distribution networks in the world, with more than 52,000 routes and more than 123,000 employees. Grupo Bimbo’s shares have traded on the Mexican Stock Exchange since 1980 under the ticker symbol BIMBO.
Forward Looking Statements
This document may contain “forward-looking information” within the meaning of applicable securities law. Such statements include, but are not limited to, statements with respect to the expected closing date of the Canada Bread sale. There can be no assurances that this transaction will be completed on this date or at all. These statements are not guarantees of future events and involve assumptions and risks and uncertainties that are difficult to predict. Actual results may differ materially from those expressed, implied or forecasted in such forward-looking information. Maple Leaf does not intend to, and Maple Leaf disclaims any obligation to, update any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Maple Leaf Foods Inc.
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