Kraft Heinz to Sell Canadian Natural Cheese Business to Parmalat

Cornelia Mascio
Novembre 9, 2018

The Italian group Parmalat, a subsidiary of French Lactalis, announced on Wednesday the buyout at Kraft Heinz Canada a part of its division of "natural cheese", for 1.1 billion euros ($1.62 billion canadian dollars).

This agreement includes the sale of Cracker Barrel, P'tit Quebec and aMOOza!, which generated about $560 million in net sales in 2017, according to a joint release from Kraft and Parmalat.

It would also include the purchase of Kraft's Ingleside, Ont., processing plant, which employs almost 400 people who would be transferred to Parmalat.

The Kraft Heinz Company has opened a digital hub designed to create digitally powered business models and to help launch entrepreneurial ideas within the business. "We also believe Parmalat is uniquely positioned to advance the natural cheese business given their experience and focus on the dairy industry".

Under the terms of the agreement, Kraft Heinz will sell its production facility located in Ingleside, Ontario.

Chicago-headquartered Kraft Heinz stressed it remains "steadfast in its commitment to the Canadian market", illustrated by its recent acquisition of the Vancouver-based Ethical Bean coffee brand.

In a release, Kraft Heinz said it will use the proceeds of the transaction primarily to pay down debt.

The evolv group will operate independent of Kraft Heinz's larger VC fund, Evolv Ventures.

RBC Capital Markets served as exclusive financial adviser to Kraft Heinz Canada, while Fasken Martineau DuMoulin LLP served as legal advisers.

Canada manages dairy supplies by setting production quotas, prices and curtailing imports.

The company says the acquisition would help grow its business and include further investment. Parmalat now has almost 3,000 employees and 16 dairy processing plants in Canada.

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