Mexican bakery major Grupo Bimbo is reportedly set to scoop up six more bakeries in Romania.
The group is said to be set to secure the new sites in a deal worth €100m ($108.9m), the Romanian business news sites Ziarul Finaciar and Profit.ro indicate.
The bread and baked goods factories are being bought from the family of local entrepreneur Siminel Andrei, according to unnamed "sources in the market" cited by Ziarul Finaciar.
When contacted by Just Food, Grupo Bimbo Romania's managing director, Ionut Ilie, declined to offer further information on the reported move.
The New York Bakery Co. bagels producer has been asked to confirm where the factories are located in Romania, their size and what products it intends to produce there.
Just Food has also asked Grupo Bimbo when it expects the deal to close.
Last February, Ziarul Finaciar reported that Andrei had invested €10m in two bread factories. These are said to be located in Brăila in eastern Romania, and Craiova in the southwestern region of the country.
Commenting on the latest acquisition in a statement sent to the publication, a Grupo Bimbo spokesperson said it could "confirm our expansion on the Romanian market and, together with it, our group’s solid purpose to continue to nourish a better world working with valuable and skilled people and bringing quality and relevant products on shelves for our consumers in each country".
They added: "As Bimbo Romania grows, we will share more of our mission and ambitious projects in the region, and we are grateful for your patience in waiting for more news from us."
In a statement sent to the site, Andrei also said "the American investment and my contribution represent an intense effort of over 15 years.
"However, Grupo Bimbo has a multi-generational history behind it, during which it developed extraordinary capabilities that it will now be able to replicate on a profile platform in Romania".
Last year, Grupo Bimbo bought Romanian bakery business, Vel Pitar, from New York-based private-equity fund NCH Investment, where Andrei is vice president.
Presenting its financial results for 2023 last month, the Takis crisps producer forecasted a "transitional phase" in 2024 as it looked to boost revenues and EBITDA.
Both sales and adjusted EBITDA were expected grow by low-to-mid-single digits this year. Those metrics reached unprecedented levels in value terms in 2023, increasing 0.3% to 399.9bn pesos ($23.7bn) and 2.8% to 54.9bn pesos, respectively, aided by six acquisitions.
Speaking to analysts in the earning call, chairman and CEO Daniel Servitje said: “While we continue to see the benefit of lower commodities, this year will be marked by a transitional phase as we navigate through a diverse consumer environment, witnessing a blend of cautiousness in certain markets and resilience in some others”.
