Baked goods giant Canada Bread confirmed in a statement today that it would sell its fresh prepared sandwich wing to Premium Brands, and that the deal would become official later this week.
Canada Bread CEO Richard Lan said the agreement would allow his company to focus more strictly on its core enterprises.
"This sale will allow us to concentrate our resources and management focus on growth in our core fresh bakery and pasta businesses. We will also benefit from an ongoing supplier relationship with Premium Brands," Lan said.
Three facilities - a distribution centre in Laval, Quebec, and production hubs in Gatineau, Quebec, and Etobicoke, Ontario - would change hands as part of the deal, Canada Bread announced, representing 280 employees whose pay checks will have a new logo on them.
Reuters reported that Canada Bread recently closed another facility - a frozen bakery centre in Laval, Quebec - incurring a consequent charge of $5.8 million. The news agency also said Premium Brands expected to spend $6 million to $7 million on capital and restructuring.
