The plant will produce Pillsbury's baking mixes and ready-to-spread frostings, and Hungry Jack pancake mixes, which Multifoods acquired subsequent to General Mills' merger with Pillsbury. The facility will also house a distribution center. Multifoods still owes $11.5 million on the purchase of the plant, half of which will be paid in March and the remainder six month later.

"Today's announcement represents another major milestone in Multifoods' transition to a branded packaged foods company," says Gary E. Costley, International Multifoods chairman and chief executive officer. "We are pleased to be closing on the purchase of this state-of-the-art manufacturing facility. This site will allow us to better serve our customers, and at the same time, it gives us room to grow."

While Multifoods will immediately begin manufacturing baking mixes at the plant, Pillsbury frostings will continue to be produced by General Mills at its Murfreesboro, TN facility until the Toledo plant meets the company's efficiency standards, hopefully by May. General Mills is responsible for the conversion of the Toledo plant and must ensure that the facility achieves production efficiency and product quality standards that match or exceed current Pillsbury levels.