USA – Grupo Bimbo, Mexico based bakery products manufacturing company has acquired the Chile baked-goods supplier Alimentos Nutra Bien from Compañía de las Cervecerías Unidas.
The deal whose transaction details were not disclosed complements Bimbo’s wide portfolio of bakery and snack goods.
According to Grupo Bimbo, the deal for Nutra Bien, which makes cookies, bread, and cakes also expands its distribution reach in Chile and increases its penetration in the traditional baked foods channel.
Grupo Bimbo is the largest bakery company in the world and had announced to buy the Chile bakery company in 2017 but the move was delayed due to competition reasons.
The country’s National Economic Prosecutor’s Office had blocked the deal on ground that it would decrease competition in the country’s food market.
It was then approved when a court overturned the initial verdict, and the court is said to have issued conditions, including setting maximum price levels for three years.
The announcement was made by the company Chairman and Chief Executive Officer, Mr. Daniel Servitje who reported strong results in the fourth quarter.
“In the fourth quarter specifically, we achieved strong results, completed the acquisition of Nutra Bien in Chile and continue to deleverage the balance sheet through double-digit EBITDA growth and debt reduction,” he said.
In the company full-year results, net sales were up 7.8% to US$15.06 billion and operating income rose 5.9% to US$967 million.
In North America, net sales rose 6.4% in peso terms, while dollar sales increased by nearly 2%.
The company said it experienced growth in strategic brands such as Sara Lee Bread, Entenmann’s Little Bites, and Barcel Snacks as a result of implementing price increases.
Commenting on the results, Daniel said: “We closed the year with record-breaking levels of net sales, gross profit, operating income and adjusted EBITDA, positioning us as a stronger and leaner company that will continue to create value and serve our consumers.”
Grupo Bimbo expanded its market reach in China last year after closing the deal to acquire Mankattan, a producer of sliced bread, cakes, buns and Japanese-style sandwich bread.