Canada Bread is acquiring Aliments Martel, a Quebec manufacturer and distributor of sandwiches, meals and sweet goods.

The C$42m (US$41m) deal will be reviewed by Canada's Competition Bureau, and may include further payouts over the next three years.

Martel employs some 425 people at three facilities, supplying its popular packaged sandwiches and wraps to convenience and grocery stores as well as other retailers in eastern Canada.

With Canada Bread's buyout of sandwich producer Royal Touch Foods last year, the company is now a national category leader.

Majority owned by Maple Leaf Foods, Canada Bread manufactures and distributes bread, rolls, sweet goods pastas and sauces under several brands, including Dempster's, Olivieri, POM and New York Bagel.