Grupo Bimbo edges out PE firms to buy Canada Bread for $1.83 bln
Mexican bread maker Grupo Bimbo has agreed to buy Canada Bread Co Ltd (TSX: CBY) from majority owner Maple Leaf Foods Inc for $1.83 billion. The proposed transaction, which has been approved by the boards of directors of Canada Bread and Grupo Bimbo, will require the approval of over two-thirds of the votes cast by shareholders of Canada Bread at a special meeting expected to take place in Apr. 2014. Maple Leaf has agreed to vote its 90% interest in favour of the acquisition. As reported by Reuters in January, other bidders for Canada Bread had included U.S. private equity firms Bain Capital and Kohlberg Kravis Roberts. Toronto-based food processor Maple Leaf (TSX: MFI) is a portfolio investment of Canadian private investment firm West Face Capital.
