McCain Foods sells frozen pizza business
McCain Foods, Florenceville, Canada, signed a deal in August to sell its North American frozen pizza business to Dr. Oetker GmbH, Bielefeld, Germany. Financial terms were unavailable.
The deal covers the Ellio’s brand in the U.S. and a two-year license for the use of the McCain brand in Canada. According to McCain Foods, pizza represents a small portion of its North American business, and the move will allow it to focus on other areas.
The sale includes its operations in Grand Falls, New Brunswick, and Lodi, NJ. McCain employees at both locations reportedly will be offered employment with Dr. Oetker.
“McCain is committed to its employees, and Dr. Oetker’s commitment to their continued employment was an important factor in the decision,” McCain Foods president and chief executive Dirk Van de Put said in a statement. “We believe the transaction is good for our employees, good for our customers and good for McCain.”
McCain will keep its Pizza Pockets business in Canada and its pizza businesses outside of North America.
The deal gives Dr. Oetker a significant boost in North America. “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.,” says Richard Oetker, chairman of the executive board of Dr. Oetker. “Adding two new production locations to the pizza factory that was opened in London, Ontario, in May 2014, means we are ideally positioned to meet the growing demand for Dr. Oetker pizzas in Canada and the United States.”
The deal is subject to regulatory approval in Canada.
Source: The Canadian Press