On Tuesday, July 2, 2019 Kraft Heinz Canada Inc. completed the previously announced C$1.62 billion sale of its Canadian natural cheese business to Parmalat Canada Inc. The transaction followed a competitive bidding process, and included the sale of well-known natural cheese brands Cracker Barrel, P’tit Quebec and aMooza. The natural cheese business contributed approximately C$560 million to Kraft Heinz's net sales in 2017.
Under the terms of the agreement, Kraft Heinz also sold its production facility located in Ingleside, Ontario and transferred approximately 400 employees from the Ingleside facility to Parmalat.
The transaction represents a significant investment by the Lactalis Group in the Canadian dairy sector. It also shows a strong commitment to Parmalat Canada’s current business, which includes nearly 3,000 employees, 16 dairy processing plants and a dedicated research and development facility. Kraft Heinz will continue to own and market its other cheese products, including iconic brands such as Philadelphia, Cheez Whiz and Kraft Singles, which are manufactured in Mount Royal, Quebec, where Kraft Heinz Canada employs approximately 900 people.
Fasken advised Kraft Heinz in this transaction with a team led by Scott Conover (Corporate) and Kathleen Butterfield (Corporate) which included Nicole Park (Corporate), Huy Do, Chris Margison, Antonio Di Domenico, Jenna Ward (Antitrust & Competition), Darrell Jarvis, Andrew Alleyne, Justine Connors, Simar Anand, Sophie MacRae, Russell Lindzon (Corporate Commercial), Mark Penner (IP), Alix Herber (Labour and Employment), Ross Gascho (Pensions), Christopher Steeves, Paul Casuccio (Tax), Clifford Sosnow (Quotas, Trade), Ingrid VanderElst (Food Regulatory), Maria Holder and Jennifer Parker (Real Property).