Kraft Canada Inc. said last month that it agreed to sell some product lines and five factories to a group led by two private-equity firms for an undisclosed sum

Food & Drink Weekly, Jan 9, 2006

Kraft Canada Inc. said last month that it agreed to sell some product lines and five factories to a group led by two private-equity firms for an undisclosed sum. The deal is expected to close soon, the Torontobased unit of Kraft Foods Inc. said. The product lines have estimated 2005 revenue of $260 million.

They are: Aylmer tomatoes, vegetable, fruits, soup and beans; Primo pasta, sauce, soup, tomatoes, beans and other products; Il Migliore and Roma foodservice pasta; and the Canadian licensing rights for certain Del Monte products. The sale will allow Kraft to concentrate on products that provide "opportunity for long-term growth," he said. The five factories are in St. David's, Dresden, Exeter and Toronto, Ontario; and in Chambly, Quebec. The buyers--private investment firm Sun Capital Partners of Boca Raton, Fla., and EG Capital Group LLC--are handling the purchase through a newly formed company, expected to be named CanGro Foods.