ATLAS ADVISORS ADVISED GRUPO BIMBO ON THE ACQUISITION OF EAST BALT BAKERIES FOR $650 MILLION

Mexico City, October 16, 2017 – Grupo Bimbo, S.A.B. de C.V. (“Grupo Bimbo”) announced today that it has completed the acquisition of East Balt Bakeries (“East Balt”), a global leader within the foodservice industry, for a price of US$650 million, cash and debt free.  Atlas Advisors acted as the exclusive financial advisor to Grupo Bimbo on the transaction.

East Balt is a leading foodservice-focused company that produces and supplies buns, English muffins, rolls, tortillas, bagels, artisanal breads and other baked goods predominantly to Quick Service Restaurants (“QSR”) around the world. Founded in 1955 and headquartered in Chicago, IL, East Balt employs approximately 2,200 associates globally and operates 21 bakeries in 11 countries across the United States, Europe, Asia, the Middle East and Africa, including two joint ventures. The company produces nearly 13 million baked goods each day to service more than 10,000 locations.  For the last twelve months through June 2017, East Balt generated sales of approximately US$420 million and EBITDA of US$70 million.

East Balt is a highly complementary platform that provides significant benefits to Grupo Bimbo, including:

  • Expansion of Grupo Bimbo’s capabilities in the high-growth and resilient QSR industry
  • Channel and geography diversification, as Grupo Bimbo will gain access to eight new countries and will achieve added scale in several existing markets such as the U.S. and China
  • Long-standing strategic relationships with the largest and most established QSR brands in the world
  • An experienced management team with a proven track record
  • World-class product innovation and manufacturing capabilities
  • Accretive margins and growth opportunities

This transaction highlights several of Atlas Advisors’ key strengths:

  • An emphasis on long-term, strategically-oriented client relationships: Atlas principals have advised Grupo Bimbo for more than a decade.  Past transactions include the following: acquisition of Canada Bread for C$1,830 million in 2014, acquisition of Hostess’s Beefsteak brand for US$32 million in 2012, acquisition of Sara Lee’s Iberian Bakery business for €115 million in 2011, acquisition of Sara Lee’s North American Fresh Bakery for US$709 million in 2010, and the acquisition of the U.S. fresh bakery business of Weston Foods for US$2.5 billion in 2008
  • Expert positioning and deal execution in the food & beverage industry in general, and in the bakery sector in particular
  • In-depth knowledge and experience in advising on and executing cross-border transactions
  • Extensive experience with a full range of public transactions, including mergers, acquisitions, go-privates, PIPEs, block sales, and divestitures

 

Atlas Advisors is the marketing name for Atlas Advisors, LLC and Atlas Strategic Advisors, LLC. Atlas Strategic Advisors, LLC provides financial advisory services in connection with mergers, acquisitions and other similar transactions. Atlas Strategic Advisors, LLC is a wholly owned subsidiary of Atlas Advisors, LLC and a member of the FINRA.

 

None of the information contained in this release constitutes a recommendation, solicitation or offer by Atlas Strategic Advisors, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.