DRUMMONDVILLE, QUEBEC – Maple Leaf Foods announced the sale of the company’s poultry processing plant in Drummondville, Quebec, to St. Cuthbert, Quebec-based Giannone Poultry. Financial details of the transaction were not disclosed, but as part of the sale, Maple Leaf Foods and Giannone reached a three-year supply agreement that will allow Maple Leaf to maintain its supply of fresh chicken.
Maple Leaf said the sale of the Drummondville plant is expected to close this summer subject to normal closing conditions and usual regulatory approvals.
“Core to Maple Leaf’s strategy is sustainable and value-added meat protein products,” said Michael McCain, president and chief executive officer of Maple Leaf Foods. “Over the past few years, our leadership position in this category has grown; however, we are focused on prioritizing capital and optimizing our processing network. The sale of the Drummondville facility is an outcome of our continued network optimization.”
Maple Leaf Foods acquired the processing plant in Drummondville along with a plant in Bradford, Ontario, as part of the purchase of select Cericola Farms assets in 2018. However, Maple Leaf Foods will continue to own and operate the Bradford poultry plant. The two facilities processed approximately 70.5 million lbs of chickens annually.