Kraft sells Canadian grocery assets, factories
TORONTO – Kraft Canada Inc. said Tuesday 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 early next year, the Toronto-based 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 affected products are “not strategically aligned” with Kraft’s overall portfolio, Kraft Canada President Dino Bianco said.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.The sale is expected to reduce fourth-quarter earnings by about 5 cents a share, Kraft said.In afternoon trading, Kraft shares were at $28.09, up 1 cent, on the New York Stock Exchange.
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