Kraft Heinz VC fund takes shapes with acquisition of AI firm wellio

Galtero Lara
Noviembre 9, 2018

The Kraft Heinz Company announced today that it has entered into a definitive agreement to sell its Canadian natural cheese business to Parmalat for a purchase price of $1.62 billion CAD (approximately $1.23 billion United States dollars at current FX rates). The proposed transaction is expected to close in the first half of 2019, subject to regulatory review and approval.

The activity includes a production site at Ingleside, in the province of Ontario, which employs approximately 400 people.

Hees said the sale will allow Kraft to focus on the segments and categories where it has "stronger brand equity, competitive advantage and greater growth prospects".

Will Kraft Heinz's efforts to restructure and repay debt pay off? After announcing the results of the company's third quarter fiscal 2018, Kraft Heinz was beset by activist investors urging the company to go private-with Krupa Global Investments, one of the company's largest institutional shareholders calling for a $80 per share buyout.

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In a release, Kraft Heinz said it will use the proceeds of the transaction primarily to pay down debt. The Kraft Heinz Company remains steadfast in its commitment to the Canadian market, illustrated by its recent acquisition of the Vancouver-based Ethical Bean coffee brand. The business generated about $560 million in net sales in 2017.

As part of its evolv group, Kraft Heinz has established technology and entrepreneurial teams in San Francisco and Chicago, USA.

Parmalat's Canadian business includes almost 3,000 employees, 16 dairy processing plants, and a research and development facility.

"If approved, the transaction will both secure and grow cheese production in Canada and make Parmalat Canada a more competitive company which in turn will help protect jobs and support dairy farm incomes", Parmalat said.

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