Saputo completes sale of bakery division

Feb. 2, 2015, Montreal — Saputo Inc. today completed the transaction announced on Dec. 18 and sold Saputo Bakery Inc., its bakery division, to Canada Bread Co. Ltd., a subsidiary of Grupo Bimbo S.A.B. de C.V.

The selling price of $120 million on a debt-free basis was received in cash at closing.

The bakery division produces, markets and distributes mainly snack-cakes in Canada, which are sold almost exclusively in the retail market. It is the largest manufacturer of snack-cakes in Canada and also sells, on a small scale, in the U.S. The bakery division operates one manufacturing facility located in the province of Quebec and employs 642 employees. In fiscal 2014, the bakery division had approximately $139 million in revenues and represented less than 2 per cent of Saputo’s consolidated revenues.

Canada Bread Co. Ltd., headquartered in Etobicoke, Ont., is a leading producer and distributor of packaged fresh bread and bakery products, operates 16 bakeries, employs approximately 3,800 people across Canada, and serves major grocery chains, retail outlets and foodservice operations.