Grupo Bimbo's acquisition of East Balt Bakeries
NautaDutilh advised Grupo Bimbo, the world’s largest baker and distributor of baked goods, in connection with its acquisition of East Balt Bakeries, a global baked goods company which supplies buns to McDonald's and other fast-food chains, from private equity fund One Equity Partners for a total consideration of approximately USD 650 million. NautaDutilh co-counseled with Cleary Gottlieb. The transaction is expected to close during the second half of 2017, subject to usual and customary conditions and regulatory approvals.
By acquiring 21 bakeries with extensive dough-processing capabilities in 11 countries across North America, Europe, the Middle East, Africa and Asia, Mexico-headquartered Grupo Bimbo is entering into eight new countries and continuing to expand its international presence. In addition, because the acquired bakeries service the largest and most well-established fast food brands in the world and are collectively capable of producing about 13 million products per day, this transaction will complement and expand Grupo Bimbo’s current participation in the food service industry, one of Grupo Bimbo’s many business channels. Finally, East Balt’s efficient and low-cost service model, profitable capital deployment strategy and sustained margins will allow Grupo Bimbo to advance its long-term value creation objectives, while preserving its financial flexibility and healthy credit profile.
NautaDutilh team: Ruud Smits en Matthijs Noome (Corporate M&A, Amsterdam office), Sybren de Beurs, Menno Lukkes and Niek de Kort (Corporate & Finance, NY office).
For more information, please see the press release issued by Grupo Bimbo.
