Analysts watch leverage as Bimbo goes shopping in Canada

Analysts watch leverage as Bimbo goes shopping in Canada

M&A

Grupo Bimbo has agreed to buy Canada Bread Company for CAD1.83bn ($1.7bn) or CAD72 per share, in a deal that gives the Mexican baker a 31% slice of the Canadian packaged bread market. The deal, funded by bank loans, will push up Bimbo’s debt to ebitda, after the firm said late last year it was time to reduce leverage. Bimbo said the acquisition would increase its debt to between 2.9 and 3.1 times ebitda, from around 2.4 times. Fitch pointed to the increased leverage as it described the deal as “

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial