By Amanda Brodhagen, Farms.com
Canada Bread Co., which is majority-owned by Maple Leaf Foods, announced Thursday that it made a deal to sell its Olivieri Foods pasta and sauce business to Spanish company, Ebro Foods SA for about $120 million.
There has been buzz about Maple Leaf Foods lately when it said it might sell its 90 percent stake in Canada Bread. The company hasn’t made up its mind yet on the decision, which could see it exit the bakery goods business and focus on its meat products.
Olivieri Foods accounted for less than 10 percent of Canada Bread’s revenue in 2012. Canada Bread’s shares rose 43 cents, to $69.00 on the Toronto Stock Exchange following the news Thursday morning. Maple Leaf’s shares rose 1.6 percent, to $15.57. The deal is expected to close by the end of 2013.