In a formal news release issued today in Italy, Parmalat Canada announced it has reached an agreement to acquire the natural cheese division of Kraft Heinz Canada. The transaction, if approved, would mean that Parmalat Canada will take on stewardship of iconic Kraft Heinz Canada cheese brands Cracker Barrel, P'tit Quebec and aMOOza!.
$1.62-billion deal: Parmalat Group acquires Kraft Heinz natural cheese division [Nation Valley News]
Under the terms of the new agreement, Kraft Heinz will sell its production facility located in Ingleside, Ontario. Kraft Heinz Canada will also transfer approximately 400 employees from the Ingleside facility to Parmalat.
Parmalat Canada said the move will help them build on their proud Canadian cheese traditions. The company has been producing natural cheese since 1881.
"Today's announcement speaks volumes about our drive to support dairy farmers, help the local economy and continue to build on our family tradition of cheese making," said Mark Taylor, Parmalat CEO and President. "We are excited to work closely with the community and our stakeholders to ensure we can grow sustainably and help Canada's natural cheese business thrive. Parmalat's brands in Canada date back as far as 1881 (Balderson). This deep-rooted heritage in Canada makes the proposed transaction a logical step for us as we seek to make an even more significant economic and social contribution in Canada."
This acquisition, if approved, would also include the purchase of the Kraft Heinz Canada processing plant in Ingleside, and its almost 400 employees. The transaction is valued at $1.62 billion Canadian dollars.
What it means for Parmalat
Parmalat Group and Parmalat Canada is uniquely positioned for this transaction as natural cheese is at the core of their business.
The transaction is a significant investment in Canadian dairy and is a vote of confidence in Canada's dairy dairy industry that will provide important benefits to Canada.
If approved, the transaction will both secure and grow cheese production in Canada and make Parmalat Canada a more competitive company, which in turn will help protect jobs and support dairy farm incomes.
The proposed transaction will also help key customer partners—both retail and food-service—as they seek to meet growing demand from consumers.
Each of the brands in Parmalat's portfolio, and the brands they will be acquiring, will remain distinct, with its own unique consumer appeal. Each will remain active and vitally important to their company, as they have always been for each and every family who buys Parmalat dairy products.
The transaction, coupled with further planned investment, is expected to produce synergies with the existing Parmalat Canada manufacturing and distribution network which in turn could lower costs, will protect jobs and support dairy farm incomes.
The Ingleside plant fits well into Parmalat's current network and helps expand their operations in Eastern Canada. Along with their existing processing facilities in Winchester and Belleville, Ontario and Victoriaville, Quebec (all three of which will remain open post the closing of this transaction), Parmalat is well positioned for future growth.
Parmalat Canada can use the new Ingleside site to improve efficiencies and grow their business. The brands being acquired have wide brand recognition and offer channels for business expansion.
Parmalat Canada produces a wider array of dairy products. This transaction will allow them to utilize more of the milk ingredients they produce, which allows them to become more self-sufficient, reduce waste, and grow their business.
This proposed transaction represents a strong commitment to Parmalat's Canadian business. It builds on their current Canadian footprint, which includes nearly 3,000 employees, 16 dairy processing plants and a dedicated Research & Development facility.
Parmalat Group and its parent company Lactalis take pride in curating and nurturing heritage brands in a way that preserves generations of cheese-making craftsmanship—this is core to their business model and who they are as a company.
Parmalat Canada is one of Canada's most innovative dairy companies. With more than 130 years of brand heritage in Canada's dairy industry, this deal will enhance Parmalat's ability to serve its customers.
Parmalat Group, which is listed on the Italian Stock Exchange, is controlled by the Lactalis Group, whose head office is in Laval, France—a worldwide leader in the dairy industry.
Parmalat made headlines earlier this year when North Dundas residents began complaining about the smell permeating from the company's Winchester, Ontario facility.
Making cheese, cutting it too—Winchester and the stink of success [Ottawa Citizen]
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