Parmalat buys canadian cheeses for more than 1 billion euros
09 Novembre, 2018, 18:48 | Auteur: Auguste Feret
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).
In the agreement, Parmalat will pick up assets that contributed approximately $560 million to Kraft Heinz's net sales past year, including household cheese brand Cracker Barrel.
This operation, subject to the approval of canadian regulatory authorities, is expected to be completed in the second quarter of 2019, said the French group.
Under the agreement, Kraft Heinz will sell its production facility located in Ingleside, Ontario, and transfer approximately 400 employees from that facility to Parmalat. It will continue to own and market its other cheese products, including Philadelphia, Cheez Whiz and Kraft Singles, which are processed in Mount Royal, Quebec, where the firm employs approximately 900 people. James L. Kraft began the business selling cheese from the back of a wagon in Chicago, Illinois. "We also believe Parmalat is uniquely positioned to advance the natural cheese business given their experience and focus on the dairy industry".
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Will Kraft Heinz's efforts to restructure and repay debt pay off? The business generated about $560 million in net sales in 2017. Across Canada, Kraft Heinz now employs approximately 2,000 employees in its facilities and thousands more, indirectly, through its co-manufacturers.
"If approved, the transaction will both secure and grow cheese production in Canada and make Parmalat Canada a more competitive company which in turn will help protect jobs and support dairy farm incomes", Parmalat said.
In Canada, Parmalat has 3,000 employees, 16 dairy processing plants and a dedicated research and development facility.
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