TORONTO – Maple Leaf Foods Inc. (TSX: MFI) says it has agreed to sell its potato processing facility in Lethbridge, Alta., to Cavendish Farms, an affiliate of J.D. Irving Ltd.
Maple Leaf says it will make about $60 million from the sale, which it will use to pay down debt.
The deal, which includes inventory and working capital, is expected to close by the end of December.
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The Lethbridge facility employs about 135 people, has annual sales of about $75 million and makes a variety of frozen French fries, hash browns and specialty potato products.
“This business will be in good hands in a company that is focused on growth in the value added potato business,” Michael McCain, Maple Leaf President and CEO, said in a statement.
“The quality of our products and strength of our people, customer and producer relationships were pivotal to completing this agreement.”
Cavendish Farms produces frozen potato and appetizer products for North American and international customers.
Toronto-based Maple Leaf Foods’ products include meat, baked goods and meals. The company employs some 19,500 people in Canada and abroad.
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