Grupo Bimbo has significantly expanded its acquisition strategy by acquiring the Slovenian bakery business, Don Don.
Headquartered in Mexico, the renowned bakery giant has pursued several strategic deals within 2023. This approach comes despite recent announcements regarding the consolidation of its global operations, including plans to close several facilities in the United States, Canada, and Spain.
As part of its third-quarter financial results, Grupo Bimbo disclosed that it has formally agreed to acquire Don Don, although the financial particulars remain undisclosed and are contingent upon regulatory approval.
This acquisition is a pivotal move, as Grupo Bimbo stated that it “expands its geographic presence to 39 countries.” The company characterized Don Don as a “leading player in the baking industry within south-east Europe,” highlighting its significant market position.
Don Don, which began its operations in 1994 with the establishment of the Slovenian brand Tvojih 5 minut, has successfully penetrated various regional markets. Notably, it expanded into Croatia in 2003 and Serbia in 2008, solidifying its presence across the Balkans.
Furthermore, Don Don made its own strategic acquisition in 2015, acquiring the Pekarna Grosuplje brand from the Mercator retail chain—a move that has strengthened its portfolio.
As a robust entity, Don Don employs over 2,400 staff and operates across an extensive geographical footprint that includes Slovenia, Serbia, Bosnia and Herzegovina, Montenegro, Croatia, Macedonia, Bulgaria, Romania, Hungary, Poland, the Czech Republic, Slovakia, Spain, Italy, Austria, and Germany.
In its efforts to enhance its production capabilities, Don Don inaugurated a new bakery facility in 2017 in Kragujevac, Serbia. This was followed by the establishment of another site in Danilovgrad, Montenegro, in 2018, and a facility in Kranj, Slovenia, in 2019.
The company boasts a diverse product portfolio that includes doughnuts, pastries, bread, rolls, and baguettes.
Meanwhile, Grupo Bimbo has also made significant strides in other markets. For instance, in September 2023, it successfully acquired the Brazilian bakery group Wickbold, adding four local factories to its extensive global network.
Earlier in the year, Grupo Bimbo acquired the gluten-free bakery company Amarittamn, which was based in Spain. This purchase is part of a larger strategy that built upon the previous October 2023 acquisition of Mile Hi Bakery located in Colorado, USA. Additionally, in the summer of 2023, Grupo Bimbo invested in a start-up named Zero Carb Company based in the Netherlands, for an undisclosed stake.
Although North America remains Grupo Bimbo’s largest market, the company has been undergoing closures of factories within the US and Canada. Recently announced closures include a facility in Lévis, Québec, and another in Québec City. Furthermore, three plants in the US, specifically two located in New York and one in Texas, are also scheduled for shutdown, alongside the Bellevue plant in Nebraska operated by Bimbo Bakeries USA.
In Europe, reports indicated that earlier in the year, Grupo Bimbo’s factory in El Verger, a town near Alicante, would cease operations.
Upon releasing its third-quarter results in October, Grupo Bimbo recorded an 11.6% decline in net income, amounting to 3.7 billion pesos (approximately $184 million). Notably, operating profit experienced a decrease of 3.7%, resulting in a total of 9.4 billion pesos. Conversely, the company’s revenue rose by 7.4%, reaching 106.1 billion pesos, while adjusted EBITDA increased by 8.4% to 15.6 billion pesos.
