Metro sells bakery production facility to FGF
Grocery giant Metro Inc. is selling a major bakery production facility to industrial baker FGF for $90 million as part of a new strategic partnership.
Under the agreement, FGF will acquire the Première Moisson Group production facility in Baie-D'Urfé, Que. Upon closing, FGF will take over the manufacturing and distribution of Première Moisson products sold in grocery stores.
Metro said the deal allows the company to focus its investments and resources on its core food and pharmaceutical retail and distribution operations.
"This transaction is consistent with our focus on our core food and pharmaceutical retail and distribution activities, while preserving the strength of the Première Moisson brand," Marc Giroux, chief operating officer of Metro, said in a release.
What stays with Metro
Première Moisson Group will remain a subsidiary of Metro. The grocery retailer will keep ownership of the Première Moisson brand name, a network of 25 bakeries across Quebec and a French pastry production facility which exclusively supplies the retail bakery network.
The agreement will allow Metro to keep supplying Première Moisson products across its food store network in Quebec and Ontario. The retailer noted it will leverage FGF's manufacturing expertise and operational scale.
Impact on operations and employees
The deal provides for the continued manufacturing of all Première Moisson products.
All affected employees will transfer to FGF when the transaction closes. Metro and FGF said they will work with the union representing unionized workers during the transition.
FGF, a Canadian company that manufactures bakery products across North America, plans to use its scale to grow the brand's grocery footprint.
"This partnership allows us to leverage our manufacturing and innovation capabilities to support the growth of Première Moisson's grocery offering while continuing to provide consumers with high-quality products," Ojus Ajmera and Tejus Ajmera, co-chief executive officers and co-founders of FGF, said in a joint statement.
The transaction is subject to customary closing conditions. It is expected to close during Metro's fourth quarter of fiscal 2026, which ends Sept. 26, 2026.
