METRO Inc. and FGF Brands (FGF), a Canadian company and a North American leader in bakery products, have announced a strategic partnership for the commercial bakery manufacturing operations of Première Moisson Group Inc., a subsidiary of METRO. As part of the transaction, FGF will acquire Première Moisson Group’s production facility located in Baie-D’Urfé for $90 million.
This transaction reflects METRO’s ongoing commitment to focus its investments and resources on its core food and pharmaceutical retail and distribution operations, while simplifying its operating model through the support of a specialized partner, said METRO.
Upon closing of the transaction, FGF will manufacture and distribute Première Moisson products sold in food stores. This agreement will allow METRO to continue offering Première Moisson products to customers throughout its Québec and Ontario food store network while leveraging FGF’s manufacturing expertise, innovation capabilities and operational scale, it said.
Première Moisson Group will remain a subsidiary of METRO and will retain ownership of the Première Moisson brand, its network of 25 retail bakeries across Québec, its artisanal in-store production operations, and its French pastry production facility in Vaudreuil-Dorion, which exclusively supplies its bakery network, it explained.
The agreement with FGF provides for the continued production and manufacturing of all Première Moisson products. All impacted employees will be transferred to FGF upon closing of the transaction; METRO and FGF will work with the union representing unionized employees as part of the transition, according to the companies.
“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. By partnering with a company recognized for its manufacturing expertise, we will continue to offer customers the Première Moisson products they enjoy while benefiting from enhanced innovation, product development capabilities and a more efficient operating structure.” said Marc Giroux, Chief Operating Officer, METRO.
“We are pleased to bring our baking expertise to METRO and in particular to Première Moisson, a brand renowned for the quality of its products and craftsmanship. 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,” said Ojus Ajmera and Tejus Ajmera, Co-Chief Executive Officers and Co-Founders of FGF.
The transaction is subject to customary closing conditions for transactions of this nature. It is expected to close during METRO Inc.’s fourth quarter of fiscal 2026, which ends on September 26.
With annual sales of more than $22 billion, METRO Inc. is a food and pharmacy leader in Québec and Ontario, providing employment to more than 97,000 people. As a retailer, franchisor, distributor, manufacturer, and provider of eCommerce services, the company operates or services a network of some 1,000 food stores under several banners including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson, and some 640 pharmacies primarily under the Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy banners.
FGF Brands is a Canadian, family-owned private bakery company founded in 2004. The FGF Group of Companies is Canada’s largest industrial baker and one of the world’s fastest-growing producers of bakery and snack foods. Headquartered in Toronto, FGF supplies a broad range of branded and private-label products to leading retailers and foodservice partners across the globe.
More from Retail Insider:
