Mexican multinational bakery giant Grupo Bimbo announced that it has completed the acquisition of Chicago-based East Balt Bakeries, one of the leading companies of the foodservice industry, which produces and provides bakery products to Quick Service Restaurants (QSR).
With this acquisition, Grupo Bimbo expands its operations to 32 countries and continues to consolidate itself, drive efficiencies and enlarge its products portfolio in a fast-growing industry.
"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.”
The new subsidiary was acquired at a price of US$ 650 million, generated annual sales of approximately US$ 420 million and an EBITDA of US$ 70 million in a 12-month period ending June 30, 2017.