Canada Bread reaches deal with Premium Brands

NEWS HIGHLIGHT

Canada Bread reaches deal with Premium Brands
Canada Bread Company has announced that it has reached a definitive agreement to sell its fresh prepared sandwich business to Premium Brands Holding Corporation.

February 14, 2011, Toronto – Canada Bread Company announced today that
it has reached a definitive agreement to sell its fresh prepared
sandwich business to Premium Brands Holding Corporation.

The transaction is expected to close on Feb. 18, subject to normal closing conditions.

“This sale will allow us to concentrate our resources and management focus on growth in our core fresh bakery and pasta businesses,” said Richard Lan, president and CEO of Canada Bread. “We will also benefit from an ongoing supplier relationship with Premium Brands.”

The fresh prepared sandwich business includes three facilities: a production facility in Etobicoke, Ont. and another in Gatineau, Que., as well as a distribution centre in Laval, Que. All together, the three facilities employ approximately 280 people. The fresh prepared sandwich business and distribution network services customers, including grocery, convenience, gas station and other retail outlets throughout Ontario and Quebec.

Upon completion of the sale, Premium Brands will maintain a strong relationship with Canada Bread and Maple Leaf Consumer Foods, which will supply bakery and deli meat products for the sandwich business operations.

Canada Bread Company is 90 per cent owned by Maple Leaf Foods Inc., a leading manufacturer and distributor of fresh bakery products, frozen par-baked products and fresh pasta and sauces. The company had 2009 sales of $1.7 billion and employs approximately 8,000 people at its operations across North America and in the United Kingdom.