Maple Leaf Foods sells pork-processing operation
November 10, 2010
by Meat&Poultry Staff
TORONTO – Maple Leaf Foods Inc. is selling its pork processing operation, located in Burlington, Ontario, to an affiliate of Sun Capital Partners Inc. Proceeds from the sale are estimated to be approximately $20 million, and the sale is expected to close within days.
"This sale will complete the transformation of our fresh pork operations to focus our growth on branded, consumer-focused prepared meats and meals business," said Michael Vels, chief financial officer of Maple Leaf Foods. "We are very pleased to have secured a buyer who will continue to operate the facility, providing ongoing employment to a highly skilled workforce, and an important market for Ontario's hog producers."
A long-term contract with Maple Leaf Foods' rendering operations is included in the transaction. The company's prepared-meat operations in eastern Canada will continue to be an important customer for the facility.
Once the sale is completed, Maple Leaf Foods will reduce its annual pork processing from more than 7 million hogs in 2006 to approximately 4.3 million hogs, concentrated at its facility in Brandon, Manitoba. This highly efficient scale plant provides a high quality raw material supply for the Company's prepared meats business.
Maple Leaf Foods Inc. is a leading Canadian food-processing company based in Toronto, Canada. It employs approximately 23,500 people at its operations across Canada and in the US, Europe and Asia. The company had sales of $5.2 billion in 2009.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in more than 240 companies worldwide with combined sales in excess of US$40 billion since Sun Capital's inception in 1995.