Bimbo Bakeries USA (BBU) announced that its parent company Grupo Bimbo, S.A.B. de C.V. will complete its acquisition of Sara Lee Corp.’s North American Fresh Bakery business, having received approval from the U.S. Department of Justice. The transaction is expected to close on Nov. 5, 2011.
"This is an exciting day for the customers, consumers and associates of both businesses," said Gary Prince, president of Bimbo Bakeries USA in a prepared statement. “We will soon be able to begin the important work of creating the new BBU — a U.S. bakery business serving the highest quality products to every market in America and providing the best value to our customers and consumers.”
Combining Sara Lee’s baking business with BBU brings together a highly complementary product portfolio and geographic coverage with bakeries in every region of the country. Over the next five years, BBU will invest over $1 billion to promote growth by creating efficient manufacturing and delivery systems in every region to serve its customers.
“We will build new bakeries where we need them, renew existing facilities and improve our technology and infrastructure,” said Prince. “Our investments will create manufacturing jobs in the U.S.”
As a condition of approval for the deal, the U.S. Department of Justice is requiring BBU to divest the Sara Lee® and EarthGrains® brands in California and the Holsum® & Milano® brands in central Pennsylvania, the EarthGrains® & Mrs Baird’s® brands in Kansas City, the EarthGrains® & Healthy Choice® brands in Omaha and the EarthGrains® brand in Oklahoma City.
“I look forward to beginning our journey as the new BBU. These two great businesses will be better together, providing exceptional service to customers, value across our product portfolio for consumers and personal and professional development opportunities for our associates,” said Prince.