Canada Bread sells Olivieri to Spanish company for $120M
October 24, 2013 | Canadian Press | Comments
Canada Bread Company Ltd. says it has sold Olivieri Foods, its fresh pasta and sauce business, to Spanish-based Ebro Foods in a $120-million deal.
Pending regulatory approval, the purchase is expected to close by the end of the year.
Olivieri Foods, which had total sales in 2012 of $105.5 million, employs 375 people in Hamilton, Ont., and Delta, B.C.
“This sale represents an excellent opportunity to optimize the value of our fresh pasta business, while realizing its potential under a company dedicated to expanding in the global pasta industry,” said Richard Lan, president and CEO.
Ebro is a multinational food group in the rice, pasta and sauces sectors.
Earlier this week, Canada Bread’s majority owner, Maple Leaf Foods said it was exploring options with its bakery business, including putting it up for sale.
Maple Leaf has been scouring its operations for cost savings as part of a seven-year restructuring plan that would improve the profits of the overall business, which is primarily focused on meat products.
If a deal materializes, popular brands like Dempster’s and Tenderflake would find themselves in the hands of a new owner.