Shareholders approve Canada Bread takeover

Shareholders in Canadian fresh and frozen bakery firm Canada Bread have voted their blessing for the company’s $1.83 billion takeover by Mexican bakery giant Grupo Bimbo.

Bimbo’s offer, announced in February, was approved by shareholders holding about 99.98 per cent of common shares voted at a special meeting held Thursday, the Toronto company said.

Said shareholders include meat processor Maple Leaf Foods, which pledged in February to vote its 90 per cent stake in Canada Bread in favour of Bimbo’s $72-per-share cash deal at Thursday’s meeting. [Related story]

The deal has already received clearance under Canada’s Competition Act and the U.S. government’s Antitrust Improvements (Hart-Scott-Rodino) Act, the company said.

Canada Bread said it plans to apply Tuesday (April 8) for further approval required from Ontario’s Superior Court. The deal also still awaits federal approval under the Investment Canada Act.

The deal is still expected to close during the second quarter of this year, the company said.

Canada Bread, which booked profit of $74.2 million on $1.567 billion in sales in fiscal 2012, employs about 5,400 people in Canada, the U.S. and the U.K. It operates Canada’s biggest direct store delivery network for fresh bakery goods, reaching over 41,000 points of sale.

The company’s fresh bakery business in Canada operates 21 bakeries in seven provinces, while its frozen bakery division includes three Toronto bakeries and one in Calgary. — AGCanada.com Network

 

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