Grupo Bimbo has agreed to buy the North American Fresh Bakery business of Sara Lee Corp.

The transaction, which is subject to regulatory review, would combine the largest and third largest baking companies in the United States, as measured by annual sales.

Sara Lee said it will be paid $959 million for its fresh baking business and predicted a closing date in the first half of calendar 2011.

The company described the deal as "another example of Sara Lee pursuing shareholder value."

According to Bimbo, the transaction will leave its U.S. subsidiary Bimbo Bakeries USA with 75 baking plants in 31 states, serving the entire continental U.S. market with a network of more than 13,000 sales routes. The company's workforce will exceed 28,000.

"This transaction demonstrates Grupo Bimbo's commitment and singular focus on baking," said Gary Prince, B.B.U. president. "Our goal is to build a U.S. bakery business that provides the highest quality products and best value to customers and consumers."

Bimbo described the transaction as "highly complementary across product lines, bakeries and geographies." The company said the Sara Lee product line "fits well" with Bimbo's variety bread and specialty products.