Mr Bagels part of Grupo Bimbos European expansion

Mr Bagels part of Grupo Bimbo's European expansion

The UK unit of Mexico-based Grupo Bimbo, the world's largest bakery business, has acquired private-label manufacturer Mr Bagels.

The deal has only now been unveiled by Gateley, the advisory firm for the transaction which is headquartered in the city of Birmingham, central England, but was conducted back in August. Financial details were not disclosed.

A statement from Gateley revealed the purchase of Mr Bagels, located in Welwyn, Hertfordshire, north of London, is part of the parent company's plans to expand in Europe. It already owns the New York Bakery Co, a UK business started by New Yorker Broney Gadman.

Mr Bagels supplies private-label customers across "pan-European businesses" and employs 60 people, although the investment is expected to create further jobs. It is also present in foodservice channels.

Cliff Irwin, the managing director for Grupo Bimbo UK, said: "The sector is doing well and consumer demand for bagels continues to rise, particularly in Europe. Our intention is to further invest in the Mr Bagels site to increase its capacity and product range as the UK and European bagel markets continue to grow."