Dive Brief:
- Grupo Bimbo will acquire Canada Bread in an all-cash deal worth $1.67 billion.
- The purchase gives Grupo Bimbo control of Canada's largest bakery, the Canada Bread facility in Hamilton, Ont.
- The Mexican food giant is already a major player in baked goods across North America. It owns stakes in Sara Lee Bakeries, Thomas English Muffins, and Entenmann’s.
Dive Insight:
Now this is a bit of news we can celebrate.
It feels to us as if Canada's Ontario has suffered more job losses in the food-production industry than any place else on the continent. Smucker's, Heinz, and Kellogg have all closed up shop there recently. Now, at last, a food manufacturer seems to have rediscovered the advantages of manufacturing within spitting distance of Toronto and easy access to markets along the East Coast and Midwest in the U.S.