Grupo Bimbo has opted to buy-back a bakery plant in Gran Canaria that had previously been sold off by Sara Lee in 2009 in a bid to drive a leadership presence in Spain.
Sara Lee, now owned by the Mexican bakery titan, had sold the plant to information technology company Grupo Sirio with a buy-back option.
While the sum remains undisclosed, the move has been approved by the Fair Trade Service of Spain.
The buy-back of the Agüimes plant, located in the Las Palmas province of Gran Canaria, will be taken on under Bimbo Ilberia.
“The acquisition of this production plant, strategic for it geographical location, will allow Grupo Bimbo to attain its objective of potentiating its leadership in the baking sector in Spain,” the firm said.
“This transaction will enable Grupo Bimbo to increase its production capacity in the Iberian Peninsula, thus reinforcing its market leadership based on the quality, freshness, innovation and launching of new and improved products that meet the preferences and nutritional needs of its customers in all markets where it competes,” it added.
Stronger Iberian network
Bimbo Iberia will now operate an integrated business of 8 production plants and 57 distribution centers across the Iberian Peninsula region.
Bimbo began operating in Spain in 1964, and its Spanish business is a replica of the original founded in Mexico City in 1945.
The bread titan posted a 0.9% drop in profits for its second quarter (Q2) back in July claiming expenses from its Sara Lee buy in 2011 as the main cause. However, sales in the US were strong; up 80% to 20.7bn pesos ($1.5bn), “most of which was due to the Sara Lee acquisition”, it said.
The Mexican company has been engaged in clear efforts to expand presence and market hold in Northeast US with moves to broaden the Sara Lee brand portfolio.