Investors Rescue Canadian Heinz Plant From Closure

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Mach 7 (Bloomberg) -- Pradeep Sood, partner at Highbury Canco, explains how investors came to rescue a Heinz plant targeted for closure after the company was sold on Bloomberg Television’s “In The Loop.”

Investors in that deal.

Thank you for joining us.

You decided, you heard that h.j. heinz is going to be closing this land as part of their transition after being acquired by buffett and three g. what gave you the idea to go ahead and try to do this?

Well, when heinz announced the departure, some of the people closer to the situation came to me and discussed that opportunity that this departure represented, and we also came to know that heinz was trying to look for a copacker in canada to keep the market, so we get together, put together a proposal through ontario chamber and the minister of economic development, got connected to the decision-makers in heinz and then proceeded on this project.

How has heinz been to deal with on this?

Excellent.

I think they are are a professional.

They understand -- i think the impression i get is they did want to stand in canada somehow.

But like large companies, they had their own decisions and process plants of a whole company, so this was a good opportunity for us, and an excellent conversation with them.

And you were able to save possibly about 250 jobs, but there were about 700 plus, am i right, in this factory.

You can save all of them, so why not?

Mainly because they are taking some of the equipment and moving the production to the u.s., so the production that they are leaving behind are the tomato juice and a couple of other products.

That allows us to hire about 150 people.

Take me back.

The reason they are closing this plant, obviously apart of it is cost, trying to look where they can save cost for the entire company, but there was also a change of rules in canada that tomato product has been made out of whole tomatoes, is that right , and not out of tomato paste?

It is not a change in rules.

This rule has been there.

Tomato juice has to be fresh tomatoes.

Not necessarily canadian tomatoes come a can be u.s., for quality tomato juice.

I see.

Are you going to, by the way, as you are going through and closing this deal, do you expect that you may at some point expand this plant, that you may actually hire more?

Yes, absolutely.

We are adding a few lines.

Also, hiring more people for the lines that we plan to add.

What is your background, pradeep?

I am a chartered accountant from india.

I have been in business for over 20 years.

I've had little shops in food manufacturing.

And this is certainly going to be another big stint in that.

Are you going to working in the future with heinz?

Are you going to be selling other companies' tomato products as well?

Yes.

Our co-packing agreement with heinz and also the debt solution in canada.

We will be co-packing for other companies and doing our own brand.

All right, pradeep sood of highbury, thank you.

Coming up, blackberry ceo tries to convince the president has to stick with -- the president and his cabinet to stick with his

This text has been automatically generated. It may not be 100% accurate.

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