Mexican baking company Grupo Bimbo has struck a deal to acquire the Paterna bread factory in Spain from Cerealto Siro Foods for an undisclosed price, as per the latest food acquisition news.

The deal also includes the bread business associated with the Paterna bread baking plant, which is located in Valencia. The bread factory in Valencia produces sliced bread, buns, and salted pastries under the brand Hacendado for Spanish supermarket chain Mercadona.

The acquisition is being executed by Bakery Iberian Investments, a subsidiary of Bimbo Group subsidiary. It is expected to further boost the profile of Grupo Bimbo in Spain, complementing its customer reach and its manufacturing presence to better serve more consumers.

Grupo Bimbo acquisition of the Paterna bread factory is subject to approval from Spain’s National Commission of Markets and Competition (CNMC).

Cerealto Siro Foods said that in the case of the deal being approved, the new brad manufacturing company will be constituted as a standalone business within Grupo Bimbo.

The Mexican baking company will also assume the production that Cerealto Siro Foods has been carrying out in the Paterna bread factory till date.

Cerealto Siro Foods, which is a cereal-based food products manufacturer, said that it will continue negotiations to wrap up the sale of the rest of its bread business, particularly the bread factory of Antequera (Málaga), and of pastries business, especially the Briviesca, Medina (Castilla y León), and Navarrés (Comunidad Valenciana) plants.

  Bakery Iberian Investments, Cerealto Siro Foods, Food acquisition news, Grupo Bimbo, Mexico, Spain, Valencia