Milling & Baking News - November 11, 2014 - 10

Business 

Grupo Bimbo steps back from
planned share offering
MEXICO CITY - Two days after gaining shareholder approval in September
for a secondary share offering, Grupo
Bimbo S.A.B. de C.V. said a global $700
million raise would move forward
quickly "if the conditions are there." In
an Oct. 24 conference call with investment analysts, the company's top executive said conditions have not been
conducive for the capital raise.
Daniel Servitje, chief executive officer, discussed the offering in comments about the company's elevated
debt levels.
"While we ultimately determined
that market conditions weren't right
at that moment, we are fundamentally
committed to a strong balance sheet and
financial flexibility," he said. "Given the
dynamics in our industry and the opportunities we foresee in the market, we

will continue to monitor market conditions and keep you updated on this."
Following the company's May 2014
acquisition of Canada Bread, total
debt to EBITDA rose to 3.0 from 2.3 at

the beginning of the year. Mr. Servitje
called the debt level "manageable"
while also expressing a "strong commitment to delevering."
For now, the company has tabled
plans to sell stock, he said.
The company's shareholders approved the management plan at a
Sept. 18 general extraordinary meeting,
allowing for the sale of as many as

Private equity group acquires
Wisconsin cookie manufacturer
CHICAGO - Arbor Investments has acquired Best Maid Cookie Company, Inc.,
a River Falls, Wis.-based manufacturer
and marketer of branded and private label gourmet cookies and dessert bars in
both fully baked and frozen dough formats. Financial terms of the transaction
were not disclosed.
Best Maid was founded in 1943 by Swedish immigrant baker C. Arthur Erickson.
The company's products are sold into the
food service, convenience store and fundraising channels across the United States.
The company will join Arbor's Le
Petit Pain baking platform, which includes New French Bakery, Inc., a Minneapolis-based commercial bakery that
manufactures branded and private label

take-and-bake and fresh artisan bread.
The Le Petit Pain platform is overseen by
Mike Schultz, operating partner at Arbor,
a 20-year executive in the baking industry, including as a former executive at
CSM Bakery Products and Minneapolisbased Best Brands Corp.
Deb Dartsch, chief executive officer of
Best Maid and Mr. Erickson's daughter,
and Ron Thielen, president, will continue
in their respective roles at the company
following the acquisition. The company
will continue to operate out of its existing
100,000-square-foot manufacturing facility.
"Best Maid enjoys a distinguished reputation in the sweet goods industry for
product quality, innovation and customer
service," said Brody Lynn, vice-president

Dunkin' Donuts rolls out Croissant Donuts
CANTON, MASS. - Dunkin' Donuts debuted the Croissant Donut at
participating Dunkin' Donuts restaurants nationwide on Nov. 3. Dunkin'
Donuts' Croissant Donut features a
flaky croissant ring that is glazed like
a donut. The Croissant Donut will be
made in limited quantities and served
each day while supplies last for a limited time only at participating restaurants nationwide. The suggested retail
price is $2.49.
"Dunkin' Donuts' baking heritage goes
10 / November 11, 2014 Milling & Baking News

back nearly 65 years, and we are proud
to extend our bakery lineup with the

231,437,500 Series A shares. Between
Sept. 18 and Oct. 24, the Bolsa Mexicana
fell in value by 5% while the S.&P.500
declined 2.2%. Shares of Grupo Bimbo
over this period appreciated in value
1.4%. The stock market has been highly
volatile during this period.
In questions during the conference
call, an analyst asked the Bimbo executives to elaborate on the share sale plans.
Guillermo Quiroz, chief financial and
administrative officer, noted that the authorization for the capital increase will
remain open until Dec. 19 and that the
offering still could go forward. Meanwhile, "we don't really need those funds
in the short term," he added.
"What we really wanted to do is to
reduce our debt in order to gain flexibility to be able to take advantage of
any opportunities that would come
or might come in the future," he said.
"If conditions are more favorable and
stable, then we would proceed during
the time we have the authorization." MBN

at Arbor Investments. "The company's
management and employees have built a
remarkable business and culture, and the
complementary product offerings at New
French Bakery will enable both companies to provide greater service to their
customers."
Mr. Schultz said Best Maid makes an
"excellent fit" with Arbor's current platform of premium artisan bread.
"We are elated to be partnering with
Arbor," Ms. Dartsch said. "Their extensive and unparalleled experience in the
food industry, and in particular the baking segment, made them a perfect fit for
Best Maid, our management team, employees and customers. Over the past
70 years, the company has experienced
tremendous growth adhering to our core
principles, and we look forward to Arbor
continuing that legacy and leading us in
our next phase of growth." MBN
addition of our new Croissant Donut,"
said Jeff Miller, Dunkin' Brands executive
chef and vice-president of culinary innovation. "The Croissant Donut has 24 layers of buttery dough and is covered with
the same sweet distinctive glaze used on
our glazed donuts, creating the ultimate
pastry that is crisp on the outside and soft
and flaky on the inside. We look forward
to bringing this new, unique bakery item
to our guests nationwide."
Dunkin' Donuts has developed a white
branded gift box with a clear window
specially designed to hold one individual
Croissant Donut. MBN
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Milling & Baking News - November 11, 2014

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