Kraft Canada Sells Business Units

Kraft Canada Inc. said it agreed to sell some product lines and five factories to a group led by two private-equity firms for an undisclosed sum.

The product lines have estimated 2005 revenue of $260 million. They are: Aylmer tomatoes, vegetable, fruits, soup and beans; Primo pasta, sauce, soup, tomatoes, beans and other products; Il Migliore and Roma foodservice pasta; and the Canadian licensing rights for certain Del Monte products. The affected products are "not strategically aligned" with Kraft's overall portfolio.

The five factories are in St. David's, Dresden, Exeter and Toronto, Ontario; and in Chambly, Quebec.

The buyers - private investment firm Sun Capital Partners of Boca Raton, Fla., and EG Capital Group LLC - are handling the purchase through a newly formed company, expected to be named CanGro Foods.

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