Canada Bread Continues Growth in Sandwich Market with Acquisition of Aliments Martel

    TORONTO, Jan. 14 /CNW/ - Canada Bread Company, Limited (TSX: CBY) today
announced it has reached an agreement to acquire Aliments Martel Inc.
("Martel"), a privately held Quebec-based manufacturer and distributor of
sandwiches, meals and sweet goods. The transaction is expected to close by the
end of January, subject to normal closing conditions including completion of a
review by the Canadian Competition Bureau. Canada Bread will acquire Martel
for an initial purchase price of $42 million and in addition, may pay an
earn-out of up to $23 million based on financial performance over the next
three years.
    Martel had sales of $54 million in 2007 and employs approximately 425
people at three facilities in Gatineau, St. Romuald and Lachine, Quebec. The
company services grocery, convenience, gas station and other retail outlets in
Quebec, Ontario and the Maritimes.
    "This acquisition reinforces our strategy of accelerating top-line growth
through diversification into other high growth, valued-added categories," said
Richard Lan, President and CEO, Canada Bread. "Expansion in the sandwich
market is a major part of this strategy and Martel brings to our company a
highly efficient manufacturing base, strong distribution capability,
geographic reach, and expertise in this growth segment of the market."
    The Martel acquisition is the second in the sandwich market for Canada
Bread. In 2006, the Company acquired Toronto-based Royal Touch Foods, a
pre-packaged sandwich business servicing customers in Ontario. Together, Royal
Touch and Martel establish the Company as a national leader in the sandwich
    "We are excited about joining a company that shares our commitment to
providing customers with the highest quality products," said Raymond Martel,
founder and President of Aliments Martel. "We look forward to leveraging our
expanded capabilities to drive growth in the sandwich and sweet goods food

    Canada Bread Company Limited, which is 88% owned by Maple Leaf Foods
Inc., is a leading manufacturer and distributor of fresh, frozen and par-baked
bread, rolls and bagels, sweet goods and specialty pastas and sauces. Canada
Bread markets products under leading brands, including Dempster's, POM, Bon
Matin and Olivieri in Canada and the New York Bagel brand in the United

For further information:

For further information: Lynda Kuhn, (416) 926-2026

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