Grupo Bimbo expands reach in Europe with acquisition of Slovenian bakery Don Don
EUROPE – Grupo Bimbo, the world’s largest bakery company based in Mexico, has recently expanded its global footprint by acquiring Slovenian bakery business Don Don.
This strategic move, announced on October 30, 2024, marks another significant addition to Grupo Bimbo’s portfolio as it continues its acquisition spree throughout 2023.
While the financial terms of the deal remain undisclosed, Grupo Bimbo confirmed that the acquisition is subject to regulatory approval.
The company highlighted that this purchase enhances its geographic presence to 39 countries, reinforcing its position in the competitive baking industry.
Don Don is recognized as a leading player in Southeast Europe, with operations extending across Slovenia, Serbia, Bosnia and Herzegovina, Montenegro, Croatia, Macedonia, Bulgaria, Romania, Hungary, Poland, the Czech Republic, Slovakia, Spain, Italy, Austria, and Germany
Founded in 1994 in Metlika, Slovenia, Don Don has established itself as a prominent name in the Balkan region. The company operates two main production facilities in Slovenia and has expanded its market reach by entering Croatia in 2003 and Serbia in 2008.
Notably, it acquired the Pekarna Grosuplje brand from the Mercator retail chain in 2015. With over 2,400 employees, Don Don boasts a diverse product range that includes doughnuts, pastries, bread, rolls, and baguettes
This acquisition aligns with Grupo Bimbo’s ongoing strategy to consolidate its operations globally while also expanding into new markets.
Earlier this year, the company announced several factory closures in North America including plants in Quebec and Nebraska as part of its restructuring efforts. Despite these closures, Grupo Bimbo’s revenue has shown resilience; it reported a 7.4% increase in revenue for the third quarter of 2023 compared to the previous year
In addition to acquiring Don Don, Grupo Bimbo has made notable purchases throughout 2023. These include acquiring Wickbold in Brazil and Amarittamn in Spain earlier this year. The company also invested in a Netherlands-based startup focused on gluten-free products
In its latest earnings report for Q3 2023, Grupo Bimbo reported a net income drop of 11.6% to 3.7 billion pesos (US$184 million), alongside a decline in operating profit by 3.7% to 9.4 billion pesos.
However, adjusted EBITDA rose by 8.4% to 15.6 billion pesos, indicating a robust operational performance despite challenges faced.
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