Bakery giant Grupo Bimbo is set to see its sales jump by more than a quarter as a result of its three recent acquisitions.
Daniel Servitje, the Mexican company’s CEO, said the group’s sales will grow 27% thanks last month’s purchase of Argentinian baker Compañía de Alimentos Fargo and this month’s acquisitions of Sara Lee’s bakery operations in Spain and Portugal and in North America.
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“All three commercial operations accomplish the company’s development expectations and give us the opportunity to create value, meanwhile allowing us to enhance the experience we’ve acquired over 65 years,” Servitje said.
Grupo Bimbo will have 154 production plants, 126,200 staff, 50,300 distribution routes, and a presence in 19 countries. Some 62% of sales will come from its international markets, according to the company.
However, Servitje added a note of caution about the “complex climate” in global markets, as well as “low single-digit” growth in the US, where the company says it will save US$150m by combining its existing operations with Sara Lee’s business over the next three years.
“We recognise the challenges posed by the different markets in a global economy, but we are certain of the strategic benefits Grupo Bimbo will derive from being present on three continents, and leveraging itself as a global company with millions of consumers”, he added.
