Mexico's Bimbo agrees to buy U.S. baker East Balt for $650 mln

Mexican breadmaker Bimbo said on Thursday it agreed to buy U.S. firm East Balt Bakeries for USD$650 million .

"This acquisition drives Bimbo's global growth strategy to expand in markets and categories with high potential," the Mexican company said in a statement.

Founded in 1955 in Chicago , East Balt supplies restaurants across the world with buns from its 21 plants in 11 countries .

Bimbo, which expanded into India and Africa in recent months, and has plans to grow in China and the rest of Asia and the Middle East , said it hoped to close the transaction by the second half of 2017 , pending regulatory approval.

Guillermo Quiroz

, Bimbo's chief financial officer, said the company would finance the purchase with a long-term credit line .

Atlas Advisors

is the financial adviser for the transaction, while Cleary Gottlieb Steen & Hamilton , and White & Case are providing legal assistance. Deloitte provided accounting help.

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