Maple Leaf consolidates UK, US units
UK-based bagel producer, are to be consolidated into one company
under the aegis of Canada Bread.
Canada Bread, a unit of Canada's Maple Leaf Foods, said on Wednesday that it is to buy all of Maple Leaf's other bakery operations and consolidate them in a C$266 million (€168.5m) deal, including debt, that will transform it into a global business.
The other bakery operations of Maple Leaf Foods operate in the US and the UK and include the recently purchased Grace Baking in the United States.
"This ownership restructuring provides Maple Leaf, through its ongoing 68 per cent ownership in Canada Bread, a continuing interest in the bakery business, where we have a substantial long-term commitment," Michael McCain, president and chief executive of Maple Leaf Foods, told Reuters
"Fully integrating these two organisations will further enhance growth opportunities and transform Canada Bread from a Canadian baking company to a global baking company with significant capabilities across fresh, par-baked and artisan bread product lines."
The acquisition is expected to add to Canada Bread's earnings and be neutral to Maple Leaf Food's profits, the company said.
Canada Bread manufactures and distributes its fresh and frozen bakery products throughout English-speaking Canada, while its Multi-Marques unit covers the Quebec market. It also produces fresh and frozen pasta and pasta through the Olivieri Foods unit.
The Maple Leaf Bakery in the US manufactures and markets frozen par-baked bread, roll and bagel products, as well as baguettes, speciality rye and health breads and speciality sourdough bread. In the UK, Maple Leaf Bakery is a major producer of bagels.