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Let’s TalkBimbo 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 |
| Price: | Undisclosed |
| 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.” |
Podcast
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 |
| Website: | nationalchoicebakery.com |
| Founded: | 1990 |
| Industry: | Food Manufacturing – Baked Good |
| Type: | Private |
| 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
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Explore Your Options NowBuyer/Acquirer: Bimbo Bakeries USA
Company Information
| Buyer: | Bimbo Bakeries USA |
| Website: | bimbobakeriesusa.com |
| Founded: | 1998 |
| Industry: | Food Manufacturing – Baked Goods |
| Parent Company: | Grupo Bimbo |
| Type: | Subsidiary |
| Employees: | 20,000 (Source: company website) |
| Locations: | Head Office: 255 Business Center Drive, Horsham, Pennsylvania, United States Arizona 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 California 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 Colorado 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 Connecticut 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 Florida Outlet #14: 840 S. Nova Rd., Daytona Beach, Florida, United States Outlet #15: 15081 South US Highway. 441, Summerfield, Florida, United States Indiana Outlet #16: 6935 Lake Plaza Dr., Indianapolis, Indiana, United States Maine 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 Maryland Outlet #20: 327 Tilghman Road, Salisbury, Maryland, United States Massachusetts 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 Michigan 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 Ohio Outlet #44: 2501 Needmore Rd., Dayton, Ohio, United States Oregon Outlet #45: 807 W. River Ave., Eugene, Oregon, United States Pennsylvania Outlet #46: 512 West Southern Ave., South Williamsport, Pennsylvania, United States Texas Outlet #47: 7301 South Freeway, Fort Worth, Texas, United States Utah Outlet #48: 425 W. 200 North, St. George, Utah, United States Vermont 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.
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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Sources
- Company Profile
- Other Sources
- Unconfirmed Sources