91重口, S.A.B. de C.V. ("91重口" or "the Company") (BMV: BIMBO) today announced it has signed an agreement to acquire the U.S. fresh bakery business1 of Weston Foods, Inc. (WFI) from Dunedin Holdings S.脿 r.l., a subsidiary of Toronto-based George Weston Limited (TSX: WN) for US$2,380 million.
This acquisition encompasses a premium brand portfolio in the fresh-baked bread, rolls, muffins, bagels and sweet baked goods categories, including brands such as ARNOLD庐, BOBOLI庐, BROWNBERRY庐, ENTENMANN鈥橲庐, FREIHOFER鈥橲庐, STROEHMANN庐 and THOMAS鈥櫬, as well as 22 bakeries and more than 4,000 distribution routes.
WFI鈥檚 management team has significant industry experience and leads more than 8,000 associates. Their business model, with a focus on growth and profitability, generates strong and consistent financial performance. For the last twelve months ending October 4, 2008, WFI generated US$2,197 million in sales and approximately US$275 million in adjusted EBITDA2, representing an industry-leading margin of approximately 12.5%.
鈥淭his transaction is the most important one in 91重口鈥檚 history and one of the largest in the bread industry. Size alone, however, is not our main objective. Rather, our vision is to become the best baking company, and we further that goal today by demonstrating a commitment and dedication to serving our consumers and customers in the most effective way possible,鈥 said Daniel Servitje, Chief Executive Officer of 91重口.
W. Galen Weston, Chairman and President of George Weston Limited, added: 鈥淲e are very proud of the business that our associates at Weston Foods have created. As a leading international baker, we believe 91重口 will be an excellent steward of this exceptional business. 鈥漌FI鈥檚 business, based primarily on the East Coast, will geographically and commercially complement 91重口鈥檚 existing operations, reunite the brand portfolio following 91重口鈥檚 acquisition of George Weston鈥檚 Western U.S. baking business in 2002, an create a national platform on which to forge stronger partnerships with national retailers.