MONTREAL - Canada Bread Co. has agreed to pay $120 million in cash to buy Saputo Inc.'s bakery division, which makes Joe Louis and May West snack cakes.
Montreal-based Saputo is primarily a cheese and dairy company, with operations throughout Canada, the United States and outside of North America. There are 642 people working at Saputo's bakery in Montreal.
The division generated $139 million in revenues during fiscal 2014, less than two per cent of Saputo's consolidated revenues.
Canada Bread is a former subsidiary of Maple Leaf Foods, now owned by Grupo Bimbo S.A.B of Mexico.
The deal is expected to close in February, subject to approval from the Competition Bureau.