Grupo Bimbo will have to offload a number of brands in the US as part of regulatory approval for its takeover of Sara Lee’s bakery business in North America.
The US Department of Justice has cleared the deal, which was struck last November, but has asked Bimbo to divest brands in a number of states.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Bimbo will have to offload assets in Omaha, Kansas City, Oklahoma City and central Pennsylvania. The Mexican company, which stands to become the largest bread maker in the US, has also been asked to divest the perpetual rights to Sara Lee and Earthgrains fresh bread, buns and rolls in California.
The assets to be offloaded generate US$155m in sales, Bimbo said. When the deal was announced last year, the companies said Sara Lee’s North American fresh bakery business made $2bn in sales.
“This acquisition represents an ideal fit in terms of filling in our geographic footprint and adding highly complementary brands and the overall product portfolio,” Gary Prince, president of Bimbo Bakeries USA, said on Friday (21 October).
The deal means Bimbo will pay Sara Lee less for the operations, down from $959m to $709m.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSara Lee CEO Marcel Smits said the company was “very pleased” to have secured clearance for the deal. He added Sara Lee, which is planning to divide in two next year, would look to “aggressively drive growth” in its two remaining categories – coffee and meats.
