Mexican baked goods firm Bimbo is expected to expand this year via an acquisition in Latin America, according to analysts.
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Bimbo has a free cash flow of US$250m after a technological upgrade of its distribution system, and analysts expect the company to spend this on an acquisition, reported Reuters.
“We predict that the company will do something, although it would be more like a strategic acquisition of a lesser amount, nothing like what we saw in the past,” analyst Mauricio Brocado of investment fund Actinver told Reuters.
Bimbo acquired the US bakery unit of Canadian firm George Weston in 2002 and is still integrating the operations.
“Like any other company of this size we are always analysing opportunities. There is nothing big at the moment but we are constantly looking for opportunities,” Armando Giner, head of investor relations, was quoted by Reuters as saying.
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