Grupo Bimbo acquires Spanish bread factory to ramp up European presence

By Gill Hyslop contact

- Last updated on GMT

Grupo Bimbo is ramping up its presence in the European market. Pic: GettyImages/sergeyryzhov
Grupo Bimbo is ramping up its presence in the European market. Pic: GettyImages/sergeyryzhov

Related tags: Cerealto Siro Foods, Mr Bagels

Bakery Iberian Investments – a subsidiary of the Mexican bakery giant – has acquired the Paterna plant in Valencia from Cerealto Siro Foods.

The factory is dedicated to the production of bread and salted pastries for Mercadona – a Spanish family-owned supermarket chain – under the brand Hacendado.

The plant is to be established as an independent business within the Grupo Bimbo group and will assume the production that Cerealto Siro Foods carried out.

In July, Cerealto Siro Foods – which was created late last year from the merger of Spanish food firms Cerealto and Grupo Siro – announced a series of bakery and baby food divestitures in order to focus on cereals.

It is still in the negotiation phase to close the sale of the rest of its bread business – including the factory in Antequera, Málaga – and its pastries business, which includes the factories in Briviesca, Castilla y León and Navarrés, Comunidad Valenciana.

The Bimbo deal is subject to the approval of Spain’s National Commission of Markets and Competition.

European expansion

Grupo Bimbo UK acquired Mr Bagels in August for an undisclosed amount.

Mr Bagels is a private label European bagel manufacturing business based in Welwyn, UK, with a turnover of £4m. The company has a 60-strong workforce.

The acquisition is in line with Grupo Bimbo’s plans for European expansion. The company owns the New York Bakery Co. brand.

"The sector is doing well and consumer demand for bagels continues to rise, particularly in Europe,"​ said Cliff Irwin, MD of Grupo Bimbo UK.

"Our intention is to further invest in the Mr Bagels site to increase its capacity and product range as the UK and European bagel markets continue to grow. When this investment is completed we would expect to be creating new jobs at the Mr Bagels site to match those ambitions."

“The sector is doing well and consumer demand for bagels continues to rise, particularly in Europe,” ​said Cliff Irwin, MD of Grupo Bimbo UK.

“Our intention is to further invest in the Mr Bagels site to increase its capacity and product range as the UK and European bagel markets continue to grow.”

Related topics: Grupo Bimbo, Bread, Markets

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