Oetker: to buy frozen pizza business in Canada

Toronto / CA. (mcf) McCain Foods said in a news release that t has signed a deal to sell its North American frozen pizza business to German Dr. Oetker GmbH. The deal covers the Ellio´s brand in the United States and a two-year licence for the use of the McCain brand in Canada. McCain said pizza represents a small portion of its North American business and the move will allow it to focus on other areas. The sale includes its operations in Grand Falls (New Brunswick, Canada) and Lodi (New Jersey, United States). The company said McCain employees at both locations will be offered employment with Dr. Oetker. «McCain is committed to its employees and Dr. Oetker´s commitment to their continued employment was an important factor in the decision», McCain Foods president and chief executive Dirk Van de Put said in the statement. «We believe the transaction is good for our employees, good for our customers and good for McCain». McCain will keep its pizza pockets business in Canada as well as its pizza businesses outside of North America. The deal gives Dr. Oetker a significant boost in North America. «The McCain business is a perfect fit for us and furthers our strategic goal of establishing ourselves as leader in the Canadian frozen pizza market and therewith strengthening our position in this market as well as expanding our position in the north-east of the U.S.», said Richard Oetker, chairman of the executive board of Dr. Oetker. «Adding two new production locations to the pizza factory that was opened in Ontario in May 2014, means we are ideally positioned to meet the growing demand for Dr. Oetker pizzas in Canada and the United States». The deal is subject to regulatory approval in Canada.