Canada Bread Company Ltd, an affiliate of Toronto-based food processor Maple Leaf Foods Inc (MFI: TSX), has agreed to sell its fresh pasta and sauce business Olivieri Foods to Ebro Foods SA for $120 million. The transaction is expected to be completed by the end of 2013. Maple Leaf, which is backed by West Face Capital, earlier this week flagged a strategic interest in the sale of its majority stake in Canada Bread. Ebro Foods, a Madrid, Spain-based food group operating in the rice, pasta and sauces sectors, is a portfolio investment of Spanish private equity firm Corporación Financiera Alba.
Canada Bread Announces Definitive Agreement to Sell Its Fresh Pasta Business to Ebro Foods S.A.
TORONTO, October 24, 2013 – Canada Bread Company, Ltd. (“Canada Bread”) (CBY: TSX) today announced that it has entered into a definitive agreement to sell Olivieri Foods, its fresh pasta and sauce business, to Ebro Foods, S.A. of Madrid, Spain for proceeds of approximately $120 million. Subject to Competition Bureau review, the transaction is expected to close by the end of 2013.
“This sale represents an excellent opportunity to optimize the value of our fresh pasta business, while realizing its potential under a company dedicated to expanding in the global pasta industry,” said Richard Lan, President and CEO. “With the leading Canadian brand in fresh pasta, a strong consumer and customer base and highly skilled employees, this acquisition provides Ebro Foods with an excellent growth platform.”
Antonio Hernández Callejas, Chairman of Ebro Foods, has expressed his satisfaction with the purchase of Olivieri, “which will enable us to enter the fresh pasta and sauces segment in Canada through the leading brand, thus consolidating our leadership in all the categories in which we operate in that country. The incorporation of Olivieri into
Ebro Foods will also produce numerous additional synergies with our European fresh pasta business headed by Lustucru, in commercial, industrial, marketing and advertising aspects.”
Olivieri Foods had total sales of $105.5 million in 2012 and employs approximately 375 people. The business manufactures flat and filled fresh pasta products and sauces at its facilities in Hamilton, Ontario and Delta, British Columbia.
About Canada Bread:
Canada Bread is a leading manufacturer and marketer of value-added flour based products, including fresh bread, rolls, bagels and sweet goods, frozen partially baked or par-baked breads and bagels, and specialty pasta and sauces. The Company markets products under a number of leading brand names, including Dempster’s®, Olafson’s, POM®, Ben’s® and Olivieri®. The Company is 90% owned by Maple Leaf Foods Inc. and its common shares are listed on the Toronto Stock Exchange under the ticker symbol CBY.
About Ebro Foods, S.A.:
Ebro Foods is a multinational food group operating in the rice, pasta and sauces sectors. Based in Spain, it has commercial and/or industrial presence in more than 25 countries in Europe, North America, Asia and Africa, through its extensive network of subsidiaries and brands. It is a global leader in the rice sector and the second largest pasta manufacturer in the world.
Forward Looking Statements
This document may contain “forward-looking information” within the meaning of applicable securities law. These statements are not guarantees of future events. Actual events may differ materially from those expressed, implied or forecasted in such forward-looking information. Canada Bread does not intend to, and Canada Bread disclaims any obligation to, update any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact: Media Contact:
Nick Boland, Vice President Investor Relations
Dave Bauer, Corporate Communications
Ebro Foods, S.A.
+34.91.724.53.78 — +34.91.724.53.74
Photo courtesy of Shutterstock.
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