General Mills agreed to sell its Argentina bakery and food service business to Grupo Bimbo, the company announced on Tuesday.
While the sale is subject to regulatory approval, General Mills said it expects the transaction to be completed by May 2, 2016.
“We would like to thank members of the Argentina bakery and food service team, who have performed well despite challenging conditions,” said Sean Walker, president of General Mills Latin America in a press release. “Having assessed our performance in the current business environment, we have determined that we need to prioritize other growth opportunities within our Latin American portfolio.”
The sale will include General Mills’ bakery and food service business, as well as all facilities, equipment, land and inventory in Argentina. Also included in the transaction are employment contracts for production and salaried staff, currently numbering about 360 people.
Impacts on employment at the Argentine business are expected to be “minimal,” General Mills said.
General Mills has operated the bakery and food service business in Argentina since 2001 when it acquired Pillsbury. The company will continue to operate its retail food business in the country, including the La Salteña brand.