Bimbo sells flour mills to investor group led by company executive
January 01, 2000
by Stormy Wylie
MEXICO CITY — Grupo Bimbo S.A., the world's third-largest bread baker, in late December announced it had sold its wheat flour milling and fruit and vegetable processing operations to a group of investors led by Roberto Servitje Achutegui, a director and executive vice-president of Bimbo and president of its Altex manufacturing division, for U.S.$134.5 million.
The Bimbo board in November named Mr. Servitje, a son of Bimbo's chairman, Roberto Servitje Sendra, and Daniel Servitje Montull, a cousin, to develop a reorganization plan to strengthen Bimbo's consumer foods and agroindustrial businesses.
An estimated 80% of the wheat flour produced by Bimbo's six mills is consumed by the company's baking operations in Mexico; the mills will continue to supply Bimbo under the agreement.
Annual sales and operating profit of the businesses were U.S.$176.5 million and U.S.$13 million, respectively.