Mississauga, Ont.-based Menu Foods Income Fund Monday announced a deal to be acquired by Simmons Pet Food of Arkansas for $239 million.

Menu Foods was involved in a massive recall of pet food three years ago and had put itself up for sale.

A person leaves the Menu Foods headquarters in Mississauga, Ont., in March 2007. At that time, the company was involved in a massive recall of pet food that battered its unit price.A person leaves the Menu Foods headquarters in Mississauga, Ont., in March 2007. At that time, the company was involved in a massive recall of pet food that battered its unit price. (Nathan Denette/Canadian Press)

The firm recalled at least 60 million cans and pouches of pet food in 2007 after contaminated products from China got into the company's supply chain and caused some animal deaths.

The company survived, but the recall cost it tens of millions of dollars, produced big losses, led to cancelled contracts and battered its unit price.

Owners of about 45 per cent of Menu Foods stock already have agreed to sell their shares to Simmons.

Shareholders will get $4.80 per unit in cash if the deal is approved, a 65.5 per cent premium over the closing price on the last trading day before the Fund's announcement it was putting itself up for sale.

A vote by unit holders on whether to approve the deal is expected in September. If approved, the deal is due to close in the fourth quarter.

In March 2007, investigators banned imports of wheat gluten from the Xuzhou Anying Biologic Technology Development Co. in China after finding melamine — a chemical used in plastics, countertops, glue and fertilizers — in samples of recalled wet and dry pet food and treats.

The chemical was also found in cats that died after eating the contaminated food.

Several other pet food makers in North America also had to recall their products after receiving contaminated wheat gluten from the same source.

With files from The Canadian Press