MONTREAL (FNS) -- Maple Leaf Foods, Toronto, has agreed to buy Multi-Marques, here, a major Quebec bakery with annual revenue of $200 million ($300 million Canadian).
The sale price wasn't disclosed, but analysts value the deal at between $26 million and $32 million. The acquisition is being done through Canada Bread Co., 68% owned by Maple Leaf and which already owns 25% of Multi-Marques.
Multi-Marques said its decision to sell was partly due to the fact it lost a major contract with Provigo here after it was acquired by Loblaw Cos., Toronto.
Canada Bread does business with Loblaw across Canada and expects to make a bigger push into the United States once the acquisition of Multi-Marques is completed. The United States also represents between 5% and 10% of Multi-Marques sales.
Maple Leaf Foods is Canada's largest meatpacker and food processing company with 13,000 employees and annual sales of $2.3 billion. Including its U.S. unit, bakery products account for about $732 million in annual revenue.