Kraft Canada to Sell Canadian Assets

Kraft Canada Inc. said Tuesday it was selling certain Canadian grocery assets to a group of investors.

The assets, which are being sold to affiliates of Sun Capital Partners Inc. and EG Capital Group LLC, will generate net revenues of approximately $256 million in 2005, Kraft said.

The proposed sale includes Aylmer tomatoes, vegetables, fruits, soup and beans; Primo pasta, sauce, soup, tomatoes, beans and other products; Ideal vegetables; Il Migliore and Roma foodservice pasta; and the Canadian licensing rights for a number of Del Monte products, including canned fruits and vegetables.

Kraft will retain the rights to the Del Monte line of beverages in Canada.