TORONTO, Oct. 24, 2013 /CNW/ - Canada Bread Company, Ltd. ("Canada
Bread") (CBY: TSX) today announced that it has entered into a
definitive agreement to sell Olivieri Foods, its fresh pasta and sauce
business, to Ebro Foods, S.A. of Madrid, Spain for proceeds of
approximately $120 million. Subject to Competition Bureau review, the
transaction is expected to close by the end of 2013.
"This sale represents an excellent opportunity to optimize the value of
our fresh pasta business, while realizing its potential under a company
dedicated to expanding in the global pasta industry," said Richard Lan,
President and CEO. "With the leading Canadian brand in fresh pasta, a
strong consumer and customer base and highly skilled employees, this
acquisition provides Ebro Foods with an excellent growth platform."
Antonio Hernández Callejas, Chairman of Ebro Foods, has expressed his
satisfaction with the purchase of Olivieri, "which will enable us to
enter the fresh pasta and sauces segment in Canada through the leading
brand, thus consolidating our leadership in all the categories in which
we operate in that country. The incorporation of Olivieri into Ebro
Foods will also produce numerous additional synergies with our European
fresh pasta business headed by Lustucru, in commercial, industrial,
marketing and advertising aspects."
Olivieri Foods had total sales of $105.5 million in 2012 and employs
approximately 375 people. The business manufactures flat and filled
fresh pasta products and sauces at its facilities in Hamilton, Ontario
and Delta, British Columbia.
About Canada Bread:
Canada Bread is a leading manufacturer and marketer of value-added flour
based products, including fresh bread, rolls, bagels and sweet goods,
frozen partially baked or par-baked breads and bagels, and specialty
pasta and sauces. The Company markets products under a number of
leading brand names, including Dempster's®, Olafson's, POM®, Ben's® and
Olivieri®. The Company is 90% owned by Maple Leaf Foods Inc. and its
common shares are listed on the Toronto Stock Exchange under the ticker
About Ebro Foods, S.A.:
Ebro Foods is a multinational food group operating in the rice, pasta
and sauces sectors. Based in Spain, it has commercial and/or industrial
presence in more than 25 countries in Europe, North America, Asia and
Africa, through its extensive network of subsidiaries and brands. It is
a global leader in the rice sector and the second largest pasta
manufacturer in the world.
Forward Looking Statements
This document may contain "forward-looking information" within the
meaning of applicable securities law. These statements are not
guarantees of future events. Actual events may differ materially from
those expressed, implied or forecasted in such forward-looking
information. Canada Bread does not intend to, and Canada Bread
disclaims any obligation to, update any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE: Canada Bread Company, Limited
For further information:
Nick Boland, Vice President Investor Relations
Dave Bauer, Corporate Communications
Ebro Foods, S.A.
+34.91.724.53.78 -- +34.91.724.53.74