Kraft Canada has agreed to sell five of its Canadian factories in Ontario and Quebec to CanGro Foods, a joint venture recently formed by companies affiliated to American Sun Capital Partners and EG Capital Group.
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Some 800 Kraft workers will become CanGro employees, along with the transfer of Aylmer, Primo, Ideal, Migliore and Roma brands, produced at those plants. CanGro will also obtain the Canadian rights for certain Del Monte products.
The price of the transaction – to be completed in the year’s first quarter – was not made public, but net incomes generated by the products last year yielded an estimated CDN$300 million (US$259.8m).
