Atlas Advisors advised Grupo Bimbo on the acquisition of Canada Bread Company for C$1,830 million

Mexico City, February 12, 2014 — Grupo Bimbo, S.A.B. de C.V. (“Grupo Bimbo”) today announced the execution of a definitive agreement to acquire Canada Bread Corporation (“Canada Bread”) for a purchase price of C$1,830 million implying a multiple of 9.3 times EBITDA. Atlas Advisors acted as exclusive financial advisor to Grupo Bimbo in the transaction.

The acquisition includes a leading fresh bakery business in Canada, which is complementary to Grupo Bimbo’s current fresh bakery operations, as well as a frozen bakery business with presence in the U.S. and Canada, and an ambient bakery business in the U.K. that specializes in bagels and viennoiserie.
The transaction represents a sizable inorganic expansion opportunity for Grupo Bimbo to enter Canada, a new and adjacent market. Grupo Bimbo’s strategic plan for the business includes leveraging its industry expertise to build a more efficient, low-cost plant network through investment in plant upgrades and DSD restructuring initiatives. These investments will improve the already excellent margins of this highly cash-generative business. The acquisition also allows Grupo Bimbo to expand with scale into the complementary frozen bakery business in both the U.S. and Canada; as well as expand its European footprint, which already includes a fresh bakery business in Spain and Portugal.

Canada Bread operates 25 plants including 16 fresh bakeries, 7 frozen plants, and 2 plants in the U.K. In total, the company employs over 5,400 associates. Pro forma sales for Grupo Bimbo after the acquisition are estimated to be US$15.2 billion dollars with pro forma EBITDA of US$1.5 billion. In addition to contributing geographic diversification to Grupo Bimbo’s Revenue and EBITDA (CB represents pro forma 9% of revenue and 13% of EBITDA), the acquisition of Canada Bread will increase Grupo Bimbo’s EBITDA margin to 9.7% on a consolidated basis. It is estimated that C$40-65 million of synergies will be achieved through various cost-savings initiatives and efficiency improvements by 2018. The acquisition is expected to be immediately accretive to Grupo Bimbo’s EPS.

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 the better part of a decade. The acquisition of Canada Bread marks the fifth transaction in Atlas’ advisory relationship with Grupo Bimbo. Past transactions include the acquisitions of Hostess’s Beefsteak brand for US$32 million in 2012, Sara Lee’s Iberian Bakery business for €115 million in 2011, Sara Lee’s North American Fresh Bakery for US$709 million in 2010, and 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: this acquisition is a landmark transaction in the North American bakery sector
  • In-depth knowledge and experience in advising on and executing cross-border transactions; this represents Atlas’ 13th transaction including a Canadian counterparty
  • Extensive experience with a full range of public transactions in the Americas, 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.