The Bonduelle Group has entered into “exclusive negotiations” with Canadian investors Fonds de solidarité FTQ and Caisse de dépôt et placement du Québec (CDPQ) as it looks to sell 65% of the Bonduelle Americas Long Life (BALL) business.
According to a press release from Bonduelle, the deal would be valued at 850 million Canadian dollars (approximately US$668).
The company said BALL had total revenue of CA$943 million (approximately US$741 million) for fiscal year 2020-2021. It processes and markets canned and frozen vegetables in the United States and Canada sold under private brands, third party brands or own brands.
According to company officials, the possible sale follows a strategic review of the company’s activities announced in September 2021. It is intended to enable the company to pursue the deployment of its activities, in particular the development of its branded activities, in line with its strategic priorities and its ambition of sustainable growth with positive impact.
"The transaction with the Fonds de solidarité FTQ and CDPQ would allow BALL to pursue its development in a North American market that is constantly consolidating and to finance its growth and profitability investments, without any new allocation of capital by the Bonduelle Group. As a minority shareholder, Bonduelle will ultimately benefit from 35% of the value created by this business" said Guillaume Debrosse, CEO of the Bonduelle Group.
"The Fonds de solidarité FTQ is proud to build this partnership to accomplish this structuring transaction for the Quebec agri-food sector,” said Dany Pelletier, executive vice president, Investments at the Fonds de solidarité FTQ.