Canopy Growth sells former Smiths Falls, Ont. chocolate factory back to Hershey Canada
Hershey Canada is returning to Smiths Falls, Ont., shopping for again its former chocolate manufacturing unit within the jap Ontario neighborhood
Canopy Growth Corp. introduced Thursday that it has signed an settlement to promote its Hershey Drive facility to chocolate maker Hershey Canada for $53 million.
“How sweet is it to have Hershey return,” Mayor Shawn Pankow says.
Canopy Growth’s determination to promote the principle web site for flower and edibles manufacturing at 1 Hershey Drive comes months after it introduced plans to shut the constructing and lay off 800 staff throughout the corporate. Approximately 350 of the 800 layoffs affected the Smiths Falls space.
A spokesperson for The Hershey Company confirms to CTV News Ottawa that it signed an settlement to buy the 700,000 sq. ft. facility in Smiths Falls, however mentioned it’s untimely to debate potential hiring or manufacturing plans for the longer term.
“This project is a strategic acquisition and is another step in our continuing investment in our supply chain network to enable our leading snacking powerhouse vision,” Todd Scott, Hershey’s senior communications supervisor, mentioned in an e mail.
“The facility provides us with the flexibility to support growth across the CMG portfolio.”
Hershey Canada arrived in Smiths Falls in 1961. The firm introduced in 2007 it might section out manufacturing of its merchandise on the Smiths Falls plant, eliminating tons of of jobs.
Pankow says he spoke with officers from Hershey Canada on Wednesday to debate the deliberate buy of the constructing.
“Hershey, they told us, they recognize an opportunity, they have a growth plan and they see that facility in Smiths Falls as an opportunity to fill that growth plan,” Pankow instructed Newstalk 580 CFRA’s Ottawa at Work with Patricia Boal.
Smiths Falls, Ont. Mayor Shawn Pankow (centre) and metropolis officers pose for an image with Hershey chocolate merchandise after Hershey Canada bought 1 Hershey Drive from Canopy Growth. (Dylan Dyson/CTV News Ottawa)
Pankow says the 1 Hershey Dr. constructing is now state-of-the-art after Canopy Growth spent tons of of thousands and thousands of {dollars} to improve the power.
“Hershey’s, I think, simply recognized Smiths Falls is a big part of their history, they’re a big part of our history and the facility was available for the right price and they know our workforce will be here to support the operations.”
Hershey Canada’s headquarters are situated in Mississauga, Ont. The firm has crops in Saint-Hyacinthe and Granby, Que.
Canopy Growth will proceed to function its post-harvest manufacturing facility on Lorne Street in Smiths Falls.
“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” David Klein, Chief Executive Officer of Canopy Growth, mentioned in a press release.
“Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk.”
At its peak, Canopy Growth employed 1,500 folks in Smiths Falls. The mayor says there are roughly 400 to 500 staff nonetheless within the city.
Since April 1, Canopy Growth has offered seven of its properties. The firm says internet proceeds from the sale of the Smiths Falls facility will probably be used to pay down the corporate’s senior secured credit score facility.
In 2013, Tweed Inc. arrange its company headquarters within the deserted Hershey’s chocolate manufacturing unit in Smiths Falls. In 2015, Tweed was renamed Canopy Growth after a merger with Bedrocan Canada.
Canopy Growth bought the total manufacturing unit at 1 Hershey Drive in 2017 for $6.6 million.
With information from The Canadian Press
