Grupo Bimbo S.A.B. de C.V. announced that its subsidiary Canada Bread Company, Limited ("Canada Bread") has reached an agreement to acquire the total shares outstanding of Saputo Bakery Inc., a subsidiary of Saputo Inc., for an aggregate cash price of CAD$120 million. 

Saputo Bakery is the leading producer of snacks cakes in Canada. This operation will position Canada Bread for further growth in the country, complementing its current product portfolio and its distribution and manufacturing footprint. The acquisition includes well-positioned brands such as Vachon®, Jos Louis®, Ah Caramel®, Passion Flakie® and May West®, among others. The company employs more than 640 associates and operates one production facility in Quebec.

As a result of the due diligence completed by Canada Bread, the business is expected to generate annual sales of more than CAD$130 million. The transaction is conditional upon receipt of customary regulatory approvals.