Kraft Canada is selling some of its assets to CanGro Foods, a new company formed by Sun Capital Partners and EG Capital Group.
Toronto-based Kraft will sell brands with a combined $300 million (Canadian) in annual sales, including Aylmer tomatoes, vegetables, fruits, soup and beans; Primo pasta, sauce, soup, tomatoes and beans; Ideal vegetables; Il Migliore and Roma foodservice pasta; and the Canadian licensing rights for Del Monte products including canned fruits and vegetables. Kraft keeps licensing rights for Del Monte beverages.
Kraft also will sell five manufacturing facilities, product inventories and related manufacturing assets. About 800 Kraft Canada staffers (mostly in manufacturing jobs) will shift to CanGro. Kraft will provide support services including procurement and IT during the transition.
The deal, whose terms were not disclosed, is expected to close in first-quarter 2006.
Network
