Canada Bread sells its fresh pasta business
Maple Leaf Foods subsidiary to sell Olivieri Foods
Toronto, Ont. – Canada Bread Company, Ltd. has announced it will sell Olivieri Foods to Madrid, Spain-based Ebro Foods, S.A. for approximately $120 million.
Olivieri Foods, the company’s fresh pasta and sauce business, produces flat and filled fresh pasta products and sauces at facilities in Hamilton, Ont. and Delta, B.C. It employs roughly 375 people, and had sales of $105.5 million in 2012. Its parent company, Canada Bread, is 90 per cent owned by Maple Leaf Foods. Earlier this week Maple Leaf announced it was considering divesting its bakery business to concentrate on its meat business.
“This sale represents an excellent opportunity to optimize the value of our fresh pasta business, while realizing its potential under a company dedicated to expanding in the global pasta industry,” says Canada Bread president and CEO Richard Lan. “With the leading Canadian brand in fresh pasta, a strong consumer and customer base and highly skilled employees, this acquisition provides Ebro Foods with an excellent growth platform.”
Ebro Foods is the world’s second largest pasta manufacturer, and is a leading rice producer. It operates or sells products in more than 25 countries in Europe, North America, Asia and Africa.
The deal is expected to close by the end of 2013.