Kraft Heinz Co has agreed to sell its Canadian natural cheese business to Parmalat SpA in a C$1.62 billion ($1.23 billion) deal that will help Kraft trim its debt and extend the North American footprint of Parmalat owner Lactalis.

Authorities ordered a massive international recall of Lactalis baby milk in December, plunging the company into scandal.

A salmonella scandal at French dairy group Lactalis has affected 83 countries, where 12 million boxes of powdered baby milk are being recalled.