Mexico City, November 9, 2010 – Grupo Bimbo, S.A.B. de C.V. (BMV: BIMBO) today announced an agreement to purchase Sara Lee Corporation’s (NYSE: SLE) North American Fresh Bakery (“Sara Lee NAFB”) business for an enterprise value of US$959 million.
The acquisition includes a royalty-free perpetual license to the iconic Sara Lee® brand in fresh bakery products in the Americas, Asia, Africa and Eastern and Central European countries, as well as a portfolio of regional brands that are well-regarded in their local markets. Sara Lee NAFB operates 41 plants and close to 4,800 distribution routes, and employs approximately 13,000 associates. For the 12 month period ended October 2, 2010, Sara Lee NAFB generated sales of US$2 billion and adjusted EBITDA of US$108 million.
The transaction provides Grupo Bimbo’s U.S. subsidiary, Bimbo Bakeries USA (“BBU”), with the opportunity to build a more efficient, low-cost platform to serve customers across the U.S. The acquisition is highly complementary across product lines, bakeries and geographies.
Sara Lee NAFB’s brand and product portfolio brings a developed business in key geographic areas and categories in which BBU was underrepresented.
The combined businesses will employ more than 28,000 associates, operate 75 plants and distribute its products through more than 13,000 routes, with estimated pro forma sales of US$5.8 billion in 2010. The integration of Sara Lee NAFB with BBU’s current operations is expected to generate annual synergies of approximately US$150 to US$200million by 2013.
