Grupo Bimbo to Acquire Canada Bread
"This transaction maximizes the value of our investment in
Mr. McCain added, "Upon completion of our prepared meats strategy at the
end of 2014, Maple Leaf intends to capitalize on its state-of-the-art
network, market-leading brands and a strong balance sheet to build on
our position as
The Arrangement Agreement provides for the acquisition of all issued and
outstanding common shares of
On closing, gross proceeds to Maple Leaf from its 90% ownership,
excluding any dividends received will be approximately
Including the
This transaction follows an exhaustive process undertaken by Maple Leaf,
in cooperation with the special committee of
The Arrangement, which has been approved by the boards of directors of
The transaction is also subject to receipt of court approval, regulatory
approvals (including Competition Act and Investment Canada Act
approvals and Hart Scott Rodino approval in
Maple Leaf is in the final phase of implementing a strategy to
significantly increase productivity and profitability in its prepared
meats business through establishing a low-cost, highly efficient
manufacturing and distribution network. The Company has entered the
peak phase of completing this strategy. Coupled with poor protein
market conditions, this network transition significantly impacted
earnings in 2013 and particularly in the fourth quarter. Once execution
of this strategy is completed, involving closing down six older
facilities, Maple Leaf expects to realize significant benefits from
increased productivity and lower overhead and operating costs.
Management does not expect the sale of its interest in
A special committee that included all of the independent directors of
Maple Leaf was established to oversee the strategic review process and
recommend the optimal use of proceeds to benefit both the Company and
its shareholders, which will include some combination of debt
repayment, supporting growth in its consumer packaged meats business
and return to shareholders. Following consideration of the
alternatives, the board of directors of Maple Leaf intends that the
return to Maple Leaf shareholders of any available proceeds from the
sale of
Investor Conference Call Details
Maple Leaf Foods will host a conference call with the investment community today at
About Maple Leaf
About
About Grupo Bimbo
Grupo Bimbo is one of the largest baking companies in the world in terms
of production and sales volume. As the market leader in the
Forward Looking Statements
This document and statements made in the above noted conference call may
contain "forward-looking information" within the meaning of applicable
securities law. Such statements include, but are not limited to,
expectations regarding the timing and outcome of the protein
transformation strategy including the EBITDA margin targets for 2015,
statements regarding the timing of the completion of the sale of
SOURCE
Investor Contact:
Michael Vels, Chief Financial Officer
416-926-2048
Media Contact:
David Bauer, Corporate Communications
416-926-2020