Maple Leaf Foods has agreed to sell its potato processing plant in Alberta, Canada, to Cavendish Farms for C$60m ($60.75m).
The 142,000ft2 plant, located in Lethbridge, produces a range of frozen French fries, hash browns and specialty potato products and employs 135 people. It has sales of approximately C$75m ($75.93m) and caters to both domestic and international customers.
Cavendish Farms president Robert Irving said the acquisition will strengthen the company, allowing it to better serve its customers in North America.
"It enhances our national distribution network in the foodservice and retail sectors in Canada and builds on our strong position in the United States," Irving added.
The transaction is expected to be completed by the end of December 2012. Cavendish Farms expects to retain all employees currently working at the Lethbridge plant.
Maple Leaf Foods plans to use the proceeds from the sale to lower debt.
Cavendish Farms, an affiliate of JD Irving, produces frozen potato and appetizer products. It serves North American and international customers for retail, restaurant and institutional use.
Maple Leaf Foods, based in Toronto, Canada, is a leading meat, meals and bakery company. It has operations across Canada, the US, Europe, and Asia, with a totalworkforce of 19500.