TORONTO Feb 12 Canada Bread Company said on Wednesday Mexico's Grupo Bimbo will acquire it in an all-cash deal worth C$1.83 billion ($1.66 billion), allowing its parent Maple Leaf Foods to focus on its meat products business.
Grupo Bimbo, one of the world's largest bread makers, will pay C$72 a share for each share of Canada Bread, a 7 percent premium to the Canadian company's closing price on the Toronto Stock Exchange on Tuesday. Shares of the company have already jumped 22 percent since October, when Canadian food processor Maple Leaf Foods disclosed that it was exploring a possible sale of its 90 percent stake.
Canada Bread is one of two dominant Canadian bakers, along with food producer George Weston Ltd, parent of the Loblaw Cos Ltd grocery chain.
In addition to bread sold under the Dempsters brand, the company sells pasta and other products under banners such as Olivieri, Ben's, POM and Sunmaid.