Parmalat Group announced Tuesday that it has entered into an agreement to acquire Kraft Heinz Canada’s natural cheese division for $1.62 billion.
The agreement includes the sale of natural cheese brands Cracker Barrel, P’tit Quebec and Amooza, and is expected to close in the first half of 2019, subject to regulatory review and approval.
In a press release announcing the deal, Kraft Heinz said the natural cheese business contributed approximately $560 million to the company’s net sales in 2017.
The deal will also include the Kraft Heinz Canada manufacturing plant in Ingleside, Ont. This adds to Parmalat’s existing network of manufacturing sites in Winchester and Belleville, Ontario, and Victoriaville, Quebec.
According to a press release, Kraft Heinz will continue to own and market its other cheese products, including Philadelphia, Cheez Whiz and Kraft Singles, which are processed in Quebec.
The Canadian division of the Parmalat group currently has nearly 3,000 employees, 16 dairy processing plants and a research and development centre.