Mexican bakery major Grupo Bimbo has acquired Modern Foods in India from its private-equity owners Everstone Capital, ending earlier speculation over a possible deal.

Back in September, a media report circulated that Bimbo was seeking to acquire a majority stake in the business. Modern Foods markets a range of baked goods, ranging from bread to cakes and muffins. 

Everfoods completed a deal for Modern Foods from Hindustan Unilever in 2016 and relaunched the bread brand in June 2017. It then went on to make “significant investments in manufacturing and research & development at Modern’s innovation hub in Chennai, coupled with thorough work on consumer insights, strategy and design”, according to a statement.

Roshini Bakshi, the managing director of Everstone Capital Asia, said: “We had a phenomenal experience in rejuvenating the legacy brand of Modern and bringing it to the dining table of consumers again. Modern has unlocked its potential through its portfolio expansion and wider reach, thereby exhibiting tremendous growth. I wish Grupo Bimbo the best for the future and hope they continue to grow bigger and better.”

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Everstone added it had "identified the major opportunities that the brand offered and helped Modern strengthen its geographic coverage, expand the portfolio, and extend the brand to adjacent and newer categories, both organically and via acquisitions".

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just-food has approached Bimbo for comment.

Bimbo, which says it is the world's largest bakery business, entered India in 2017 through the acquisition of a majority stake in local packaged bread group Ready Roti India, with brands including Harvest Gold.