Mexico City, October 16, 2017 - Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo" or the "Company") (BMV:BIMBO) today announced that it has completed the acquisition of East Balt Bakeries ("East Balt"), a leading foodservice-focused company, for a price of US $650 million, after having received regulatory approvals.
"East Balt Bakeries brings us a talented team of professionals with great experience in the foodservice industry. Our entry into eight new countries represents an important step in achieving our Vision of transforming the baking industry and expanding our global leadership to better serve more consumers. We warmly welcome all our new East Balt associates to the Grupo Bimbo family and look forward to working together within our new division: Bimbo QSR," said Daniel Servitje, Chairman and CEO of the Company.
Diego Gaxiola, CFO of Grupo Bimbo, added, "The integration of East Balt helps drive forward our value creation objectives, as the approximate 3% and 5% annualized increase in Group sales and EBITDA translates directly into accretive margins, earnings per share, and profitability. To fund the transaction, we are drawing down an existing committed long-term revolving credit facility and utilizing part of the resources obtained from the recent local bond issuance: BIMBO17. This strategy preserves the Company’s financial flexibility and healthy credit profile."
East Balt’s results will be consolidated effective in the fourth quarter and included in North America and EAA (Europe, Asia and Africa) regions for reporting purposes.
About Grupo Bimbo
Grupo Bimbo is the largest baking Company in the world, in terms of volume and sales. Grupo Bimbo has 195 plants and more than 1,700 sales centers strategically located in 32 countries throughout the Americas, Europe, Asia and Africa. Its main product lines include fresh and frozen sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods, tortillas, salted snacks and confectionery products, among others. Grupo Bimbo produces over 13,000 products and has one of the largest direct distribution networks in the world, with more than three million points of sale, around 57,000 routes and more than 137,000 associates. Its shares trade on the Mexican Stock Exchange (BMV) under the ticker symbol BIMBO, and in the over-the-counter market in the United States with a Level 1 ADR, under the ticker symbol BMBOY.