MONTREAL, Que.—Saputo Inc. has agreed to sell it’s bakery division Saputo Bakery Inc. to Canada Bread Co., Ltd. for $120 million.
The transaction is subject to the usual conditions, including approval by the Canadian Competition Bureau, and is expected to close in February 2015.
The bakery division produces, markets and distributes snack-cakes in Canada, which are sold almost exclusively in the retail market. It is the largest manufacturer of snack-cakes in Canada, but also sells some snack cakes in the U.S.
Saputo Bakery operates one manufacturing facility in Québec and employs 642 employees. In fiscal 2014, the Bakery Division had approximately $139 million in revenues and represented less than two per cent of Saputo’s consolidated revenues.
Canada Bread, headquartered in Etobicoke, Ont., produces and distributes packaged fresh bread and bakery products. It operates 16 bakeries, employs approximately 3,800 people across Canada, and serves major grocery chains, retail outlets and foodservice operations.