Saputo to sell bakery division

Dec. 18, 2014, Montreal — Saputo Inc. announced today it has entered into an agreement with Canada Bread Company Ltd., a subsidiary of Grupo Bimbo S.A.B. de C.V., to sell Saputo Bakery Inc., its bakery division.

The selling price of $120 million on a debt-free basis is payable in cash at closing. The transaction is subject to the usual conditions (including approval by the Canadian Competition Bureau) and is expected to close in February 2015.

Saputo’s 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 United States. The bakery division operates one manufacturing facility located in 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 Company 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.