Milling & Baking News Corporate Profiles - October 2012 - (Page 72)

Company Overview Grupo Bimbo S.A.B. de C.V. Sharp focus on successful Sara Lee integration or Grupo Bimbo S.A.B. de C.V., Mexico City, the focal point in the United States in 2012 is crystal clear — the largest integration in U.S. wholesale baking history. The endeavor follows the purchase late in 2011 by Bimbo of the fresh baking business in North America of Sara Lee Corp. First announced in 2010 but held up for longer than a year by the Department of Justice, the acquisition has created a U.S. operation for Bimbo with 75 baking plants and nearly $6 billion in annual sales. By purchasing the Sara Lee business, which operated 41 baking plants and 4,100 routes when the acquisition was ﬁrst announced, B.B.U. widened its position as the nation’s largest baker by a wide margin. Flowers Foods, Inc., the next largest wholesale baker, operates 44 baking plants and has annual sales of about $2.8 billion. Just before the Sara Lee transaction was completed, Daniel Servitje, Bimbo’s chief executive ofﬁcer, said Bimbo would hit the ground running when the deal ﬁnally was closed. “The integration process will begin immediately after closing, and we expect to gradually reach $150 million in annual synergies,” he added. Related to the integration is compliance with an agreement with the Justice Department requiring the divestiture of the Sara Lee and EarthGrains brands in California and smaller brands in the Harrisburg/Scranton region of Pennsylvania and the Kansas City, Oklahoma City and Omaha metropolitan areas. In April, Bimbo said it was divesting Chief executive ofﬁcer – Daniel Servitje F the Sara Lee and EarthGrains brands in California and smaller brands in the Harrisburg/Scranton region of Pennsylvania and the Kansas City, Oklahoma City and Omaha metropolitan areas. The smaller brands include Sara Lee’s EarthGrains brand and B.B.U.’s Mrs Baird’s brand in the Kansas City area; Sara Lee’s EarthGrains brand in the Oklahoma City area; Sara Lee’s EarthGrains and Healthy Choice brands in the Omaha area; and Sara Lee’s Holsum and Milano brands in the Harrisburg/ Scranton area. When Mr. Servitje sat down in the middle of 2012 for an interview with Milling & Baking News, a successful integration was top of mind when asked about Bimbo’s long-term aspirations in the United States. “I hope by 2015 we are through with the integration of Sara Lee, and our company is seamless to our customers and ourselves,” he said. “Also, that we have a single information technology system and an enriched culture, which is common to all of Bimbo. And, that we are a low-cost operator striving to provide the best value for customers.” As part of the integration, Bimbo Bakeries USA remains committed to signiﬁcant capital investment, Mr. Servitje said. “Gary (Prince, president of B.B.U.) from day one declared we intended to invest $1 billion in the next ﬁve years to renew manufacturing assets and strengthen our distribution capability,” Mr. Servitje said. “The reason is quite simple. The U.S. baking industry has many plants that are 40, 50, 60 or 2011 global sales — $6 billion (pro forma) Top brands – Arnold Ball Park Bimbo EarthGrains Entenmann’s Mrs Baird’s Oroweat Sara Lee Stroehmann Thomas’ 72 \ October 2012 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2012

Milling & Baking News Corporate Profiles - October 2012