Grupo Bimbo has acquired US foodservice company East Balt Bakeries for $650 million in a bid to expand its global reach.
Founded in 1955 and headquartered in Chicago, East Balt was bought by One Equity Partners in 2012. It employs around 2,200 people and operates 21 bakeries in the US, Europe, Asia, the Middle East and Africa.
East Balt produces and supplies buns, English muffins, rolls, tortillas, bagels, artisanal breads and other baked goods mainly to quick service restaurants.
Grupo Bimbo claimed that the deal represents its strategy to focus on high-growth markets. The Mexican bakers last month unveiled its first product range in the UK.
Bimbo CEO Daniel Servitje said: “East Balt brings significant expertise, a remarkable track record of profitable growth, and a geographically diverse and highly scalable platform in the foodservice segment, complementing our current business within this channel.
“This acquisition continues to fulfil our vision of expanding our global reach to better serve more consumers, with entry to eight new countries.
“Notably, East Balt enjoys long-standing strategic relationships, with the largest and most established quick service restaurant brands brands in the world.”
East Balt generated annual sales of approximately $420 million and the transaction is expected to be completed by the end of the year.
Guillermo Quiroz, chief financial officer of Grupo Bimbo, added: “With an efficient and low-cost service model, a profitable capital deployment strategy, and sustained margins, this accretive acquisition in terms of margins, earnings per share and profitability, supports our value creation objectives.”
Source: Foodbev.com
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