Canada Bread Co, which is majority-owned by Maple Leaf Foods Inc, said on Thursday it agreed to sell its Olivieri Foods fresh pasta and sauce business to Ebro Foods SA of Spain for about C$120-million ($115.51-million).
The move comes days after Canadian food processor Maple Leaf said it might sell its controlling stake in Canada Bread as it decides whether to exit the bakery goods business and focus on meat products.
Toronto-based Canada Bread said the deal, which is subject to regulatory approval, is expected to close by the end of 2013.
Olivieri Foods accounted for less than 10 per cent of Canada Bread’s revenue in 2012. The company also sells bread under the Dempsters brand and other food products under banners such as POM, Ben’s and Sunmaid.