Heinz has announced it has reached a preliminary deal with Highbury Canco Corp. which will allow the company to acquire its tomato processing plant in Leamington, Ontario, thus saving it from closure.
According to the Huffington Post, Heinz is a major employee in the Ontario town and had announced plans last November to close the facility by late June this year. The closure would put close to 800 full-time employees out of work.
However Heinz has now announced that it has signed a letter of intent with Highbury Canco to acquire the Leamington facility and to also act as a co-packer for Heinz. Highbury also added that they intend to employ about 250 people plus additional seasonal workers.
Speaking about the possible agreement, Michael Mullen, a senior vice-president with Heinz, said “The deal is subject to the successful completion of the full transaction but it is great news for Heinz and for Leamington.”
Pradeep Sood, a spokesman for Highbury Canco added that the company “will continue to manufacture certain Heinz products and provide some distribution and logistics services to Heinz in Canada.”
Source: The Huffington Ppost