Grupo Bimbo completes acquisition of China baking group Mankattan

02-Jul-2018 - Last updated on 02-Jul-2018 at 14:21 GMT

Grupo Bimbo has completed its acquisition of Mankattan Group, a move that will aid growth in branded bakery and foodservice across China, its CEO says.

The acquisition was initially announced in February, this year and has now passed final regulatory approvals.

The Mankattan Group is China's second-largest wholesale bakery company with almost 2,000 employees and four plants in Beijing, Shanghai, Sicuan and Guangdong. The company manufactures sliced breads, cakes and buns for quick-serve restaurants and traditional retail stores.

Daniel Servitje, chairman and CEO of Grupo Bimbo, said the acquisition would complement and enhance Bimbo's current portfolio, distribution network and manufacturing footprint – driving plant numbers in China up to ten.

“Not only does the addition of Mankattan strengthen our presence in the country, it also provides us with a platform to grow the market for branded, packaged baked goods as well as the foodservice channel in China,” said Servitje.

“This is a vital growth market for us and an acquisition that bolsters our global profile,” he said.

China's bakery boom expansion plans

By the end of this year, China's bread and bakery product will pull in revenues of $21.25bn, up 4.7% from 2017, according to IBISWorld's latest report. Demand for bread and bakery products remained“steady and substantial”, it said, driven by a number of factors including rising household incomes, high levels of foreign investment, strengthened food regulations and a shifting consumer trend towards high-quality products.

Servitje said the Mankattan acquisition showed Grupo Bimbo's commitment to strengthen presence in the world's second largest economy and most populated country.

China's population currently stands at more than1.4bn and the country grew its economy 6.8% in the first quarter of 2018.

“Mankattan brings a sizable amount of synergies to our operations in the North of China, as we will be able to optimize our supply chain to better serve more customers.” he said.

Grupo Bimbo has 198 manufacturing plants across the globe, 43 of which are located in Europe, Asia and Africa – a region that represented 8% of total sales in Q1, 2018.