McCain Foods is buying Midwest Foods Inc., the New Brunswick-based frozen food giant said.
The deal, which includes Midwest's major french fry processing plant in Carberry, Man., is awaiting regulatory approval.
No purchase price was announced.
"We plan to operate the plant as another quality production unit in our North American network of potato processing facilities," said McCain CEO Dale Morrison.
The acquisition will bring to 16 the number of food processing plants operated by McCain Foods in Canada.