Canada Bread has been sold to a Mexican food company for $1.83 billion.
The Langley-based baker owned by Maple Leaf Foods will be sold to Grupo Bimbo, one of the worldâ€™s largest food firms.
Maple Leaf currently holds approximately 90% of the outstanding shares of Canada Bread and has agreed to vote all of such shares in favour of the transaction.
The deal must be voted on by shareholders, which is expected in April.
Maple Leaf plans to focus more on its bread and butter operations â€“ namely consumer packaged meats.
â€œThis transaction maximizes the value of our investment in Canada Bread and focuses Maple Leaf on building its leadership in the consumer packaged meats business,â€ said Michael H. McCain, Maple Leafâ€™s president and CEO. â€œGrupo Bimbo is an excellent company with strong values and a global leadership position, with little overlap in our geographic markets. This makes for a highly complementary fit with our bakery operations and is expected to provide exciting opportunities for Canada Bread employees, customers and other business partners.â€
Grupo Bimbo is one of the largest baking companies in the world (based on production and sales volume). As the market leader in the Americas, Grupo Bimbo has 144 plants and more than 1,600 distribution centers in 19 countries throughout the Americas, Europe and Asia.