France-based food manufacturer Fleury Michon is in talks over the potential sale of its subsidiary in Canada.
In a stock-exchange filing, the company said it is in “exclusive negotiations” to sell Fleury Michon America (FMA) to an unnamed company “based in North America”.
FMA supplies prepared meals to the airline industry. The Quebec-based subsidiary has been owned by Fleury Michon since 2006.
“This potential transaction would represent a great opportunity for FMA and its employees to develop, thanks to the diversification in dynamic markets and new distribution channels in North America, where the potential buyer is already present,” Fleury Michon said.
“Fleury Michon and the potential buyer will conduct the preliminary studies that could make it possible to complete the sale of FMA in the coming months. The conclusion of the transaction will be subject to certain preconditions, in particular, the result of pre-acquisition studies and the approval by the competent [regulatory] authorities.”
The group has other operations supplying the airline sector, principally the Netherlands-based Marfo Food Group, which it acquired in 2019.
“We maintain our ambitions to grow in airline catering, which would mainly be carried by our subsidiary Marfo, in the Netherlands, in the event of this transaction,” Fleury Michon added in the stock-exchange filing on Wednesday (5 May).
In September, Fleury Michon struck a deal to sell its 50% stake in a venture in Italy. The company offloaded its half-share of Piatti Freschi Italia, a ready-meals manufacturer in which it had been an investor for almost 20 years.