TORONTO - (August 20, 2014) –Leading international pizza producer Dr. Oetker GmbH (Dr. Oetker) and global food manufacturer McCain Foods Limited announced today that agreement has been reached for the purchase of McCain’s North American frozen pizza business by Dr. Oetker. The transaction includes operations in Grand Falls, New Brunswick and Lodi, New Jersey.
Also included in the sale is US brand “Ellio’s” and a two-year licence for the use of the McCain brand in Canada. The acquired products complement Dr. Oetker’s existing portfolio in Canada and the US very well.
All McCain employees at both facilities will be offered continued employment with Dr. Oetker. McCain will continue to operate its Pizza Pockets business in Canada as well as its pizza businesses outside of North America.
“Acquiring McCain’s frozen pizza business is a historic milestone for Dr. Oetker in North America,” said Richard Oetker, Chairman of the Executive Board of Dr. Oetker. “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 USA. Adding two new production locations to the pizza factory that was opened in London, Ontario (Canada) in May 2014, means we are ideally positioned to meet the growing demand for Dr. Oetker pizzas in Canada and the United States,” he continued.
“Pizza represents a small portion of McCain’s North American business and today’s announcement enables us to focus on businesses where we believe we can drive long-term growth for the benefit of employees and customers,” said Dirk Van de Put, President & CEO of McCain Foods Limited. “McCain is committed to its employees, and Dr. Oetker’s commitment to their continued employment was an important factor in the decision. We believe the transaction is good for our employees, good for our customers and good for McCain,” he continued.
McCain has a strong presence in Grand Falls and throughout New Brunswick, employing 2500 people across the province at its other manufacturing facilities, its Global Technology Centre, its global Potato Processing Technology Centre and its Day & Ross operations. McCain continues to invest in Grand Falls and the entire province of New Brunswick.
The transaction is subject to regulatory approval in Canada.
About Dr. Oetker
Dr. Oetker GmbH is the umbrella organization for numerous Dr. Oetker production and sales companies that are active in around 40 different countries. As well as Germany, the companies are primarily based in Western and Eastern Europe, but are also active in Canada, Brazil, India, China, Malaysia, Australia, South Africa, Tunisia, and the USA. Companies under the umbrella of Dr. Oetker GmbH generated total sales revenue of €2,137 million in 2013. Dr. Oetker employs around 10,300 people in total – 200 of these are based in North America today. Founded in the German city of Bielefeld over a century ago, family company Dr. Oetker is one of the leading producers of brand-name products in the food industry. With more than 10 product lines including baking goods, dessert mixes, pizzas, and Food Service products, Dr. Oetker markets around 220 different products in North America.
About McCain Foods Limited
McCain Foods Limited is an international leader in the frozen food industry, employing approximately 20,000 people and operating 49 production facilities in 160 markets on six continents. A privately owned company headquartered in Florenceville-Bristol, NB and Toronto, McCain generates annual sales of approximately CDN$7.6 billion. McCain is the world’s largest manufacturer of frozen potato products, and also produces other products including pizza, appetizers, desserts and vegetables. The company has nine food production facilities in Canada, and also owns The Day & Ross Transportation Group, which is based in Hartland, New Brunswick and is one of the largest transportation companies in Canada. McCain Foods employs almost 9,000 people across the country.
Contacts:
Leslie Walsh
Vice President
FleishmanHillard
Office: (416) 645-8185
Cell: (416) 578-7016
Email: leslie.walsh@fleishman.ca
Calla Farn
VP Government Public Relations and Corp Affairs
McCain Foods Limited
T. 506 392-3277
calla.farn@mccain.ca
