Grupo Bimbo acquires Ecuadorian firm Supan

Mexican bakery giant Grupo Bimbo is set to acquire Ecuadorian company Supan – its first buy in the region.

The transaction for an undisclosed amount included Supan lines Supan, Bimbo, Grile, Braun, Dulzones, Rey-pan and Pansol in the packaged bread, buns and sweet baked goods segments.

The takeover will mark an end to a long running dispute over Supan’s use of the brand name Bimbo in Ecuador, a Grupo Bimbo spokesperson told the Wall Street Journal.

Announcing the acquisition the company said: “The transaction represents Grupo Bimbo’s debut into the Ecuadorian market, in line with the company’s strategy to further strengthen its footprint in the Americas.”

Supan employs 900 staff with two production facilities in Guayaquil and Quito.

The move follows Bimbo’s C$1.8bn (£1bn) acquisition of Canada Bread, the bakery division of Maple Leaf Foods, in February. The brand also purchased Hostess Brands' Beefsteak bread in 2013 and Sara Lee Corp's North American bakery business in 2011.  

Grupo Bimbo said its new buy was expected to generate sales of over US$57m, with a US$6m adjustment of earnings before interest, taxes, depreciation and amortization (EBITDA).