Saturday, May 23rd8.9°C
25936
26319

McCain Foods sells North American frozen pizza business to Dr. Oetker

TORONTO - McCain Foods said Wednesday it has signed a deal to sell its North American frozen pizza business to Dr. Oetker GmbH.

Financial terms of the deal were not immediately available.

The deal covers the Ellio's brand in the U.S. and a two-year licence for the use of the McCain brand in Canada.

The company said pizza represents a small portion of its North American business and the move will allow it to focus on other areas.

The sale includes its operations in Grand Falls, N.B., and Lodi, N.J. The company said McCain employees at both locations will be offered employment with Dr. Oetker.

"McCain is committed to its employees, and Dr. Oetker’s commitment to their continued employment was an important factor in the decision," McCain Foods president and chief executive Dirk Van de Put said in a statement.

"We believe the transaction is good for our employees, good for our customers and good for McCain."

McCain will keep its pizza pockets business in Canada as well as its pizza businesses outside of North America.

The deal gives Dr. Oetker a significant boost in North America.

"The McCain business is a perfect fit for us and furthers our strategic goal of establishing ourselves as leader in the Canadian frozen pizza market and therewith strengthening our position in this market as well as expanding our position in the northeast of the U.S.," said Richard Oetker, chairman of the executive board of Dr. Oetker.

"Adding two new production locations to the pizza factory that was opened in London, Ont., in May 2014, means we are ideally positioned to meet the growing demand for Dr. Oetker pizzas in Canada and the United States."

The deal is subject to regulatory approval in Canada

Earlier this month, McCain Foods announced it would close a French fry plant on Prince Edward Island at the end of October, a move that will cost 121 jobs.

The company said at the time that there has been a shift in demand for its French fries from North America to other parts of the world, which was a factor in its decision.

The Canadian Press


Read more Business News

26180


Recent Trending




Today's Market
S&P TSX15200.76-2.85
S&P CDNX703.48+2.97
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8142-0.0053
Gold1205.70+1.30
Oil57.45-1.98
Lumber273.30+3.70
Natural Gas2.885-0.064

 
Okanagan Companies
Pacific Safety0.13-0.01
Knighthawk0.010.00
QHR Technologies Inc1.48+0.03
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.09+0.01
Russel Metals25.79-0.03
Copper Mountain Mining1.38-0.03
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.175-0.010
Decisive Dividend Corporation2.20+0.60

 



24910

FEATURED Property
21526979970 Highway 97 North
10091030 bedrooms
$2,400,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...


Squaring the circle

Photo: Thinkstock.comI have been reading about market segmentation and choice. Howard Moskowitz’s research into tomato sauce as retold by Malcom Gladwell on the TED talks (http://www.ted.com/tal...

_



25482

25482


Member of BC Press Council


24843