Bimbo Bakeries USA Acquires National Choice Bakery in Minnesota

Bimbo Bakeries USA, a subsidiary of Mexican multinational Grupo Bimbo, acquired National Choice Bakery, a premier manufacturer of commercial bagels, based in Minnesota, United States, on July 17, 2023. Bimbo Bakeries USA is a producer of fresh and packaged baked goods.

Transaction Summary

The Facts of the Acquisition

  • Target: National Choice Bakery is a premier manufacturer of commercial bagels and provides fresh, refrigerated bagels to retailers and bakeries. The company and its production facility are based in Minnesota, United States.
  • Acquirer: Bimbo Bakeries USA is the U.S. subsidiary of Mexican multinational bakery company Grupo Bimbo. Bimbo Bakeries is one of the largest producers of baked goods in the United States.

Our Take on the Acquisition

National Choice Bakery (target) is a relatively small acquisition by Bimbo Bakeries USA (acquirer) and represents less than a 0.3% increase in revenue. Though the price was undisclosed, it included National Choice’s 66,325 square-foot bagel production plant and 5.86-acre site in Minnesota, which sold for USD $5.2 million in cash, according to public filings. This extra production capacity is the main reason for the acquisition, and it can be expanded to cater to the increasing demand for Bimbo Bakeries’ products.

The Transaction

Date:July 17, 2023
Purpose: To expand production capacity.
Acquirer’s Statement:Bimbo Bakeries USA – “The additional capacity gives our company the opportunity to meet consumer demand and continue to grow our breakfast portfolio. In addition to welcoming the National Choice Bakery associates to Bimbo Bakeries USA team, the company is currently hiring for open positions at the South St. Paul Bakery. We are thrilled to have the South St. Paul associates join our team of bakers who work hard every day to produce quality baked goods that continue to delight our consumers.”


On our F&B Talk podcast, we had a detailed discussion with Ben Cosgrove, Senior Director of Corporate Strategy and Development at Bimbo Bakeries USA, about how Grupo Bimbo makes acquisitions. Ben has a diverse background in M&A, venture capital, and corporate strategy. Listen to the full podcast here.

Target/Seller: National Choice Bakery

Company Information

Target:National Choice Bakery
Industry: Food Manufacturing – Baked Good
Employees:57 (Self-published on LinkedIn)
Locations:Head Office and Production Facility: 130 Hardman Avenue South, South St. Paul, Minnesota, United States

Product Information 

Products:Bagels – A dense, ring-shaped bread roll made from yeasted wheat dough that is boiled and then baked
Market Reach:United States

Financial Information 

Revenue:USD $28.2 million (Source: ZoomInfo)
Revenue per Employee:USD $494,737 (i.e., USD $28.2 million / 57 employees = USD $494,737 – estimated based on the self-published number of employees and the revenue from ZoomInfo)

Did You Know?

First created in Poland in 1683, bagels are the only bread that’s boiled before baking. Once the dough is shaped into a ring, it’s dipped in boiling water for three to five minutes on each side, then drained and baked for 10 minutes. Despite the myriad bagel flavors available in the United States, from blueberry to the “everything” bagel, the most popular choice is plain, closely followed by sesame.

Target/Seller Overview: National Choice Bakery

National Choice Bakery was founded in 1990 as Twin City Bagel Inc. with a focus on providing the local trade with fresh bagels on a daily basis. National Choice Bakery now manufactures European-style bagels – water boiled, hearth-baked – for the retail and foodservice industries. The company makes fresh, refrigerated, frozen, and thaw-and-sell bagels in a variety of sizes. National Choice Bakery operates out of a 66,325 square-foot, kosher-certified production plant in South St. Paul, Minnesota

National Choice Bakery produces a wide variety of bagels.
National Choice Bakery operates a production facility in Minnesota.

Buyer/Acquirer: Bimbo Bakeries USA

Company Information

Buyer:Bimbo Bakeries USA
Industry: Food Manufacturing – Baked Goods
Parent Company:Grupo Bimbo
Employees:20,000 (Source: company website)
Locations:Head Office: 255 Business Center Drive, Horsham, Pennsylvania, United States

Outlet #1: 10050 W. Bell Road, Sun City, Arizona, United States
Outlet #2: 10414 North 19th Ave., Phoenix, Arizona, United States
Outlet #3: 7535 E. Broadway, Tucson, Arizona, United States

Outlet #4: 264 S. Spruce Ave, South San Francisco, California, United States
Outlet #5: 480 S. Vail Ave, Montebello, California, United States
Outlet #6: 7601 Wilbur Way, Sacramento, California, United States

Outlet #7: 3232 Chelton Circle, Colorado Springs, Colorado, United States
Outlet #8: 5305 East 72nd Ave., Commerce City, Colorado, United States
Outlet #9: 373 N. Denver Ave., Loveland, Colorado, United States
Outlet #10: 5050 E. Evans Ave, Denver, Colorado, United States

Outlet #11: 284 Bull Hill Ln., Orange, Connecticut, United States
Outlet #12: 207 Shunpike Rd., Cromwell, Connecticut, United States
Outlet #13: 1041 New Haven Rd., Naugatuck, Connecticut, United States

Outlet #14: 840 S. Nova Rd., Daytona Beach, Florida, United States
Outlet #15: 15081 South US Highway. 441, Summerfield, Florida, United States

Outlet #16: 6935 Lake Plaza Dr., Indianapolis, Indiana, United States

Outlet #17: 230 B. Skowhegan Road, Fairfield, Maine, United States
Outlet #18: 587 Main St, Gorham, Maine, United States
Outlet #19: 24 Landry Rd., Lewiston, Maine, United States

Outlet #20: 327 Tilghman Road, Salisbury, Maryland, United States

Outlet #21: 601 Centre St., Brockton, Massachusetts, United States
Outlet #22: 453 E. Washington St., North Attleborough, Massachusetts, United States
Outlet #23: 1968 Boston Rd., Wilbraham, Massachusetts, United States

Outlet #24: 13280 Newburgh Rd., Livonia, Michigan, United States
Outlet #25: 1356 W. Hill Rd., Flint, Michigan, United States

New Hampshire
Outlet #26: 3 Eastpoint Dr., Hooksett, New Hampshire, United States
Outlet #27: 815 Court Street, Keene, New Hampshire, United States

New Jersey
Outlet #28: 1468 Blackwood Clementon Rd, Clementon, New Jersey, United States

New Mexico
Outlet #29: 111 Montaño NE, Albuquerque, New Mexico, United States

New York
Outlet #30: 67 East Main Street, Nelliston, New York, United States
Outlet #31: 1874 State St., Schenectady, New York, United States
Outlet #32: 5585 E. Main St., Verona, New York, United States
Outlet #33: 99 W. Nyack Rd., Nanuet, New York, United States
Outlet #34: 40 Fuller Rd., Albany, New York, United States
Outlet #35: 27 North Putt Corners Rd., New Paltz, New York, United States
Outlet #36: 67 S. Peru St., Plattsburgh, New York, United States
Outlet #37: 195 N. Exchange St., Geneva, New York, United States
Outlet #38: 195 Cronin Rd., Queensbury, New York, United States
Outlet #39: 900 Jefferson Rd., Rochester, New York, United States
Outlet #40: 2301 Teall Ave., Syracuse, New York, United States
Outlet #41: 9 Police Dr., Goshen, New York, United States
Outlet #42: 1624 Castle Gardens Rd., Vestal, New York, United States

North Carolina
Outlet #43: 2579 Hendersonville Rd., Arden, North Carolina, United States

Outlet #44: 2501 Needmore Rd., Dayton, Ohio, United States

Outlet #45: 807 W. River Ave., Eugene, Oregon, United States

Outlet #46: 512 West Southern Ave., South Williamsport, Pennsylvania, United States

Outlet #47: 7301 South Freeway, Fort Worth, Texas, United States

Outlet #48: 425 W. 200 North, St. George, Utah, United States

Outlet #49: 374 US Route 302, Berlin, Vermont, United States
Outlet #50: 1188 Memorial Dr., St Johnsbury, Vermont, United States
Outlet #51: 338 Boyer Circle, Williston, Vermont, United States

West Virginia
Outlet #52: 1255 Washington Ave., Huntington, West Virginia, United States

Product Information 

Products:Baked goods including:
Bagels – A dense, ring-shaped bread roll made from yeasted wheat dough that is boiled and then baked
Bread – A leavened, kneaded dough made with flour or meal, milk or water, and yeast mixed together and baked
Cookies – Baked or cooked snacks or desserts typically small, flat, and sweet
Pastry – A dough of flour, fat, and water used as a base and covering in baked dishes
Pizza Crust – A dough made from flour, yeast, water, salt, and olive oil, which serves as a base for pizza
Rolls – Small round or oblong loaf of bread
Market Reach:United States

Financial Information 

Revenue:USD $8.9 billion (Unconfirmed Source: Zippia, an online recruitment company)
Revenue per Employee:USD $450,000 (i.e., USD $8.9 billion / 20,000 employees = USD $450,000 – estimated based on the number of employees reported by the company and revenue from Zippia)

What Is the Bakery Industry?

Broadly, bakeries form the bulk of the bakery industry, which refers to the grain-based food industry. Grain products are made from oats, rice, wheat, cornmeal, barley, and other cereal grains. So, breads, cakes, pies, pastries, breakfast cereals, pasta, and tortillas, for example, fall into this category. Within this, the North American Industry Classification System (NAICS), a classification of businesses by economic activity, divides the industry into eight sub-categories:

  • Bakeries and Tortilla Manufacturing
  • Retail Bakeries
  • Frozen Cakes, Pies, and Other Pastries Manufacturing
  • Cookie and Cracker Manufacturing
  • Dry Pasta, Dough, and Flour Mixes Manufacturing from
  • Purchased Flour
  • Tortilla Manufacturing
  • Breakfast Cereal Manufacturing
  • Baked Goods Retailers

Buyer/Acquirer Overview: Bimbo Bakeries USA

Bimbo Bakeries USA is the U.S. corporate arm of Mexican multinational bakery products manufacturer Grupo Bimbo. It is the largest bakery company in the United States, where it owns many fresh bread and sweet baked goods brands.

Grupo Bimbo is a publicly listed Mexican multinational food company with a presence in 33 countries. In 1994 it bought La Hacienda, a California-based tortilla company. In 1997 it bought Pacific Pride Bakeries in San Diego. And in 1998 it bought Mrs. Baird’s Bakeries in Texas. These combined operations were renamed Bimbo Bakeries USA.

Today, Bimbo Bakeries USA operates more than 50 bakeries, employs more than 20,000 people, and distributes products through 11,000 sales routes throughout the United States.

Bimbo Bakeries USA operates a variety of brands in the United States.

Previous Acquisitions by Bimbo Bakeries USA

  • Lender’s Bagels (2020) – A producer of pre-packaged bagels, based in Connecticut, United States

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