Metro has agreed to sell its industrial bakery in Baie-D’Urfé, Que., to FGF Brands for $90 million.

The companies said the transaction is part of Metro’s strategy to focus on its core food and pharmacy retail and distribution businesses while simplifying its operating model.

The large-scale production facility is currently owned by Metro subsidiary Première Moisson. Upon closing, FGF will manufacture and distribute Première Moisson products sold through Metro’s food stores in Quebec and Ontario.

Première Moisson Group will remain a Metro subsidiary and will retain ownership of the Première Moisson brand, its network of 25 retail bakeries in Quebec, its artisanal in-store production operations and its French pastry production facility in Vaudreuil-Dorion, Que., which supplies the bakery network.

Under the agreement, FGF will continue producing all Première Moisson products. Employees affected by the transaction will transfer to FGF when the deal closes, with Metro and FGF working with the union representing unionized employees during the transition.

“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,” said Marc Giroux, chief operating officer at Metro. “By partnering with a company recognized for its manufacturing expertise, we will continue to offer customers the Première Moisson products they enjoy while benefitting from enhanced innovation, product development capabilities and a more efficient operating structure.”

“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-CEOs and co-founders of FGF.

The transaction is subject to customary closing conditions and is expected to close during Metro’s fourth quarter of fiscal 2026, which ends Sept. 26, 2026.

Montreal-based Metro is a food and pharmacy retailer operating in Quebec and Ontario. The company owns the Première Moisson brand, operates a network of about 1,000 food stores and 640 pharmacies, and reported annual sales of more than $22 billion.

FGF Brands is a Canadian, family-owned bakery company headquartered in Toronto. Founded in 2004, it is Canada’s largest industrial baker and supplies branded and private-label bakery and snack products to retailers and foodservice customers across North America and other global markets.

Photo: FGF