The deal includes selling Nestle's Wallaceburg, Ontario factory which produces the Libby line of products. Heinz will continue to use the Libby name.
A company spokesperson for Nestle says the sell-off was a strategic move since canned beans and pasta are no longer a core business. It follows a similar decision to divest canning operations in the U.K. The company now focuses on such products as coffee, confectionery and non-canned food. Heinz's line includes food service, baby food, ketchup and condiments, pet food, tuna and diet food.
Nestle Canada, a unit of Switzerland's Nestle SA, has sales in excess of $750m. Heinz Canada, a unit of U.S. parent H.J. Heinz Co., has estimated annual sales of $370m.
Copyright September 1996, Crain Communications Inc.