MEXICO CITY, July 20 (Reuters) - Mexican breadmaker Bimbo said on Thursday it agreed to buy U.S. firm East Balt Bakeries for $650 million.
“This acquisition drives Bimbo’s global growth strategy to expand in markets and categories with high potential,” the Mexican company said in a statement.
Founded in 1955 in Chicago, East Balt supplies restaurants across the world with buns from its 21 plants in 11 countries.
Bimbo, which expanded into India and Africa in recent months, and has plans to grow in China and the rest of Asia and the Middle East, said it hoped to close the transaction by the second half of 2017, pending regulatory approval.
Guillermo Quiroz, Bimbo’s chief financial officer, said the company would finance the purchase with a long-term credit line.
Atlas Advisors is the financial adviser for the transaction, while Cleary Gottlieb Steen & Hamilton, and White & Case are providing legal assistance. Deloitte provided accounting help. (Reporting by Gabriel Stargardter; Editing by Amrutha Gayathri)