Multifoods, which spun off its foodservice distribution division last year, will use proceeds of the sale to reduce debt.
"This sale is part of our efforts to simplify our Foodservice Products business and improve cost structure," states Gary Costley, chairman and ceo. "The foodservice pie business does not fit our long-term growth strategy."
International Multifoods, Minneapolis, says it has agreed to sell inventory and other selected assets of its $10-million foodservice pie business to an undisclosed buyer for approximately $2.3 million in cash. The manufacturer will shutter its Canadian pie plant in connection with the transaction, which is expected to close by the end of August.