McCain Foods has signed a deal to sell its frozen pizza business in North America to Dr. Oetker, CBC News reports.
As a result of the deal, the value of which has not yet been disclosed, Dr. Oetker will acquire the Ellio’s brand in the US and a licence to use the McCain brand in Canada for a period of two years. Also included in the sale are operations at Grand Falls, N.B., and Lodi, N.J., and McCain staff at both facilities will reportedly be offered employment with Dr. Oetker.
“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”.
Meanwhile McCain said that selling its pizza business, which it described as a small portion of its overall activities in North America, would allow it to focus on other areas.
Source: CBC News