Canada Bread agrees to sell pasta business to Spain's Ebro

Reuters

TORONTO, Oct 24 (Reuters) - Canada Bread Co, whichis majority-owned by Maple Leaf Foods Inc, said onThursday it agreed to sell its Olivieri Foods fresh pasta andsauce business to Ebro Foods SA of Spain for about C$120 million($115.51 million).

The move comes days after Canadian food processor Maple Leafsaid it might sell its controlling stake in Canada Bread as itdecides whether to exit the bakery goods business and focus onmeat products.

Toronto-based Canada Bread said the deal, which is subjectto regulatory approval, is expected to close by the end of 2013.

Olivieri Foods accounted for less than 10 percent of CanadaBread's revenue in 2012. The company also sells bread under theDempsters brand and other food products under banners such asPOM, Ben's and Sunmaid.

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