Maple Leaf Foods Inc. (MFI), the Canadian producer of foods from hamburgers to frozen pasta, has drawn bids for its bread unit from Grupo Bimbo SAB, Flowers Foods Inc. (FLO:US) and several private-equity firms, three people with knowledge of the matter said.
The Toronto-based food producer, which owns 90 percent of Canada Bread Co. (CBY), said in October it would explore options for the stake, including a possible sale as it divests assets to focus on its meat business. With several suitors evaluating the company, a sale is looking more likely, said one of the people, who asked not to be named because the talks are private. Maple Leaf hired Centerview Partners LLC and Royal Bank of Canada to look for buyers, the people said.
“Those are the two most logical buyers of the asset and I would be extremely surprised if they weren’t both very, very interested in it,” Brian Huen, managing partner at Red Sky Capital Management Ltd., said by phone from Toronto. Red Sky manages about C$225 million ($215 million) including Maple Leaf shares.
To read the rest of the story, please go to: Bloomberg Businessweek
