beyondbrics

By Hanna Gezelius of mergermarket

Grupo Bimbo’s acquisition of Mexican confectionary, Dulces Vero, for an estimated $85m-$95m, shows the bakery’s determination to continue increasing its market share in its domestic market. Bimbo made $1.1bn in Mexico in Q1 – a rise of 3.2 per cent on last year, and half the company’s total net sales.

The company has completed a number of acquisitions in South America over the past three years including companies from Brazil, Argentina and Colombia – helping it to become one of the top five food companies globally 

Grupo Bimbo’s shares moved little after the announcement. It opened at PS 97 and traded a day high of 98.49. Market capitalisation stands at PS 115.06bn ($ 9.07bn).

Dulces Vero reported a turnover of $87m in 2009 and an EBITDA of about $17m last year. It exports it lollipops and gummy sweets to over 20 countries worldwide and will folded into Grupo Bimbo’s its snack division, Barcel. Bimbo hopes the purchase will boost sales in the US Hispanic market.

Grupo Bimbo was established in Mexico in 1945. The company is very strong in Mexico and Latin America, but also has a presence in 17 countries across Asia and the Americas.