Canada-based bakery group FGF Brands has struck a deal to buy a production facility owned by Metro, one of the country’s largest grocers.

Family-owned FGF is to pay Metro C$90m (US$64.2m) for the Première Moisson Group site in Baie-D'Urfé, a Montreal suburb.

Under the terms of the deal, Metro will remain the owner of the Première Moisson brand and its retail bakeries in Québec.

FGF will manufacture and distribute Première Moisson products, meaning Metro will continue offering Première Moisson lines to customers in Québec and in Ontario.

“This partnership allows us to leverage our manufacturing and innovation capabilities to support the growth of Première Moisson’s grocery offering while continuing to provide consumers with high-quality products," FGF co-CEOs and co-founders Ojus Ajmera and Tejus Ajmera said in a joint statement.

FGF says it is Canada's largest industrial baker and “one of the world's fastest-growing producers of bakery and snack foods”. It supplies branded and private-label retailers and foodservice operators.

The group’s brands include the Wonder and Country Harvest labels picked up when the company acquired a clutch of assets from Canadian baker Weston Foods five years ago.

Metro said the deal reflects its efforts to “focus its investments and resources on its core food and pharmaceutical retail and distribution operations”.

COO Marc Giroux added: “This transaction is consistent with our focus on our core food and pharmaceutical retail and distribution activities, while preserving the strength of the Première Moisson brand. By partnering with a company recognised for its manufacturing expertise, we will continue to offer customers the Première Moisson products they enjoy while benefiting from enhanced innovation, product development capabilities and a more efficient operating structure.”