U.S.-based food and beverages company Kraft Heinz Co plans to sell its Canadian natural cheese business to Italian dairy and food company Parmalat SpA in a deal valued at 1.62 billion Canadian dollars ($1.23 billion).
Kraft expects to use proceeds from the deal to pay down debt.
Under the deal, expected to close in the first half of 2019, Kraft will sell its production facility in Ingleside, Ontario and transfer 400 employees to Parmalat.
Kraft said it will continue to own and market its other cheese products, including Philadelphia, Cheez Whiz and Kraft Singles, which are processed in Quebec.