Grupo Bimbo receives US clearance to acquire Sara Lee

US food company Sara Lee has reached an agreement with the US Department of Justice (DOJ) that will facilitate the sale of its US fresh bakery business to Mexico-based Grupo Bimbo.

Grupo Bimbo has to sell some brands and assets in Omaha, Kansas City, Oklahoma City and central Pennsylvania, after it acquires Sara Lee’s bakery business.

In addition, Grupo Bimbo will have to divest certain assets and the perpetual rights to the Sara Lee and Earthgrains brands for fresh bread, buns and rolls in the state of California.

As a result of these changes, Sara Lee has reduced the unit’s selling price from $959m to $709m.

With closure of the deal, Grupo Bimbo can sell Sara Lee branded fresh baked goods category across the world, with the exception of New Zealand and Australia, while Sara Lee will retain the right to sell its branded frozen desserts and meat products, including sliced deli meats.

The acquisition also provides Grupo Bimbo with a range of Sara Lee’s regional bakery brands, such as Grandma Sycamore’s, Heiner’s and Rainbo.

The deal is expected to close on 5 November 2011.