Zara Inc. said Wednesday it has acquired the foodstuff trading and packaging company Zara Foods for an undisclosed amount.
The company said the deal, which it says will create over 200 new jobs, will give it a presence in food-service retail, packaging and food service logistics.
Zara said it will provide an enhanced supply chain and technology, and a new platform for Zara employees.
Zampo Group, which owns the retail chain Trader Joe’s, said Wednesday that it will retain its interest in the business and will continue to develop its own brands.
Zantac, which operates grocery and drug stores, said it is also looking at opportunities in food and beverage, as well as consumer brands.
The deal was first reported by the Associated Press.
The companies were founded in 2013 and are based in Vancouver, British Columbia.
Zamana is the first food-and-service company in Canada to be acquired by an online retailing firm.
It has also created a mobile app, Zamamie, that offers customers an app-based grocery shopping experience.
The Toronto-based company said it’s also looking to expand its food services business.
Zarah Foods was founded in 2011 and now has more than 2,000 employees, including some 250 people at its Canadian headquarters.
The Montreal-based food service firm is currently undergoing an expansion plan, which includes hiring another 1,500 people and expanding its global operations.
The new deal comes as Canada’s food and drink sector has been grappling with a series of food recalls over the past several months.
Last week, the province announced a food safety investigation into Zara’s supplier of baby formula, citing two separate incidents.
In December, the company announced that it was recalling the infant formula from two stores.
The recall affected nearly half a million baby formula samples sold in the province.
Zaretsky Foods was one of the biggest food service companies in Canada until it was bought by Zara in 2015.
Zaras CEO David Vavra said the acquisition will enable Zara to further strengthen its brand and ensure it remains relevant in the fast-growing food industry.
Zarretsky Foods, which opened its first outlet in Toronto in 1998, said the Zara acquisition is a significant milestone for the company.
The Canadian company said Zara will be responsible for more than 400 full-time jobs, including more than 60 employees at its Vancouver, B.C., headquarters.
“We’re very excited to be able to work with Zara and bring Zara Foodstuffs to Zara, as we look to further expand our footprint in the Canadian food and beverages market,” Vavras said in a statement.
Zazara said in the statement that it is committed to growing its business, and will remain focused on delivering high-quality, safe, affordable and high-value food.