McCain Foods said it has signed a deal to sell its North American frozen pizza business to Dr. Oetker GmbH. The deal covers the Ellio’s brand in the U.S. and a two-year license for the use of the McCain brand in Canada.
“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 northeast of the U.S.,” said Richard Oetker, chairman of the executive board of Dr. Oetker, cited by Yahoo News.
The sale includes its operations in Grand Falls, N.B., and Lodi, N.J. The company said McCain employees at both locations will be offered employment with Dr. Oetker.
McCain will keep its pizza pockets business in Canada as well as its pizza businesses outside of North America, but the deal gives Dr. Oetker a significant boost in North America.
“Adding two new production locations to the pizza factory that was opened in London, Ont., in May 2014, means we are ideally positioned to meet the growing demand for Dr. Oetker pizzas in Canada and the United States,” said the Dr. Oetker representative.
The deal is subject to regulatory approval in Canada.