Consortium signs deal to acquire Baxters Canada

A group of companies comprising Fonds de solidarité FTQ, Fondaction and Investissement Québec has partnered with the Champlain Financial Corporation to purchase Baxters Canada, a manufacturer of canned soups and sauces based in Saint-Hyacinthe, Québec.

Fonds, Fondaction and Investissement Québec are set to become Baxters Canada shareholders as part of the initiative and each company is expected to invest a sum of $8m.

Baxters Canada is the Canadian subsidiary of UK-based Baxters Food Group.

The company is a leading soup manufacturer in Canada and is also recognised as a key player in the country’s private-label products market.

It caters to a wide range of consumers with its three product lines, namely Aylmer, Primo and Baxters, along with an assortment of private-label and industrial products.

The company has also invested in a variety of equipment for its Saint-Hyacinthe facility, which has been awarded internationally recognised GFSI certification.

Fonds de solidarité FTQ senior vice-president for innovation and agri-food Alain Denis said: “With this acquisition, the Fonds can help fuel the growth of agri-food exports and position a Québec company in a mature sector that is undergoing consolidation in Canada.

“Baxters Canada is poised to penetrate the US and Mexican markets, as well as develop new products.

“We have confidence in the skills and experience of the management team, whose mandate will be to drive the company’s growth.”

Baxters Canada president and CEO Daniel Cousineau said: “We have an ambitious growth plan that includes acquisitions and geographic diversification.

“That’s why we’re thrilled to team up with the Fonds, Fondaction and Investissement Québec, because all three partners share our vision and have the expertise and financial wherewithal to allow us to achieve our objectives.”

Baxters Canada was originally founded in 1976 as SoupExperts, which manufactured ready-to-eat vacuum-packed food products for the Canadian Army.

The company’s Saint-Hyacinthe facility has subsequently grown to 90,000ft² over the years, enabling the firm to develop its offering of canned soups and sauces for industrial and private-label customers.

Baxters Food Group initially acquired the company in 2004, which allowed it to expand its customer base and acquire licences for the Aylmer and Primo de Conagra labels.

Baxters currently sells approximately 60 million cans per year.