Kraft Heinz, the multinational food firn, has announced it is selling its natural cheese business in Canada to dairy firm Parmalat for C$1.62 billion ($1.23 billion)
The agreement includes the sale of natural cheese brands Cracker Barrel, P’tit Quebec and aMOOza! in the Canadian market, as well as a production facility located in Ingleside, Ontario. Kraft Heinz said it would continue to own and market its other cheese products in Canada, including Philadelphia, Cheez Whiz and Kraft Singles.
Commenting on the deal, Kraft Heinz CEO Bernardo Hees said: “We’re excited about what this transaction means for our future growth and business in Canada. We also believe Parmalat is uniquely positioned to advance the natural cheese business given their experience and focus on the dairy industry. At the same time, we can focus on the segments and categories where we have stronger brand equity, competitive advantage and greater growth prospects”.
Kraft Heinz said it expected to use proceeds from the transaction, which is expected to close in the first half of 2019, primarily to pay down debt.
Source: Kraft Heinz (via BusinessWire)