Kraft to sell Canada natural cheese business to Parmalat

Mae Love
November 9, 2018

This Tuesday, November 6, the company announced an agreement to sell its Canadian natural cheese business-including Cracker Barrel, P'tit Quebec and aMOOza! brands-to Parmalat in a transaction valued at $1.62 billion CAD (approximately $1.24 billion USD).

The deal should close in the second half of 2019.

The deal will also include the sale of a processing plant in Ingleside, Ont. and its 400 employees.

With this sale, "we can focus on the categories where our brand is stronger and where we have a competitive advantage and growth prospects of the largest", stressed the CEO of Kraft, Heinz, Bernardo Hees.

The company also said it remains "steadfast in its commitment to the Canadian market", using its recent acquisition of a Vancouver-based coffee brand as an example. Evolve group's teams are located in Chicago and San Francisco, focused on creating digitally-powered business models and launching "other entrepreneurial ideas" to fuel the growth of Kraft Heinz.

In a release, Kraft Heinz said it will use the proceeds of the transaction primarily to pay down debt. Kraft Heinz directly employs 2,000 people in Canada.

Mobile announces $50 prepaid unlimited data plan, following AT&T and Verizon
Leaked internal documents from T-Mobile reveal that the carrier will launch the program starting tomorrow, November 9th. Taking that into account you can pay $35 per month and increase the data allowance to a much more friendly 3GB.

Dead After California Shooting At Popular Nightspot, Police Say
Suddenly, a man wearing a black trench coat and sunglasses approached the door and shot the security guard at the entrance. Sparks' friends had been in tears throughout the day as they desperately searched for her in the aftermath of the shooting.

Saints' Thomas pulls celebrates TD with cell phone
Thomas then went to the goal post and lifted up the padding around the base of the post, where he had hidden a cell phone. Drew Brees dropped back to pass from his own 28 and threw an absolute dime to Michael Thomas streaking up the sideline.

RBC Capital Markets served as exclusive financial advisor to Kraft Heinz Canada for this transaction, while Fasken Martineau DuMoulin LLP served as legal advisors.

In 2017, this division has achieved a turnover of 560 million canadian dollars, or approximately 374 million euros.

With more than 130 years of brand heritage in the Canadian dairy industry, Parmalat Canada is committed to producing great tasting, nutritious dairy products and supporting the health and wellness of Canadians through its iconic brands like Beatrice, Lactantia, Astro, Black Diamond and Balderson.

The company says the acquisition would help grow its business and include further investment.

In Canada, Parmalat has 3,000 employees, 16 dairy processing plants and a dedicated research and development facility.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER