TORONTO, Aug. 23, 2013, 2013 (Canada NewsWire via COMTEX) –TSX: MFI
Maple Leaf Foods (MFI: TSX) today
announced that it has entered into a definitive agreement to sell
Rothsay, its rendering and biodiesel business, to Darling International
Inc. of Irving, Texas. The transaction is expected to close by the end
of 2013, subject to regulatory approvals.
“The sale of our rendering and biodiesel business supports our strategy
to focus on effective capital deployment and profitable growth in the
consumer packaged foods market,” said Michael McCain, President and
CEO. “We are delighted to have concluded almost a year-long process
with an agreement with Darling, the North American leader in food waste
recycling. The sale will support future investments in our consumer
facing businesses and allow Darling to build on Rothsay’s strong
capabilities and deep customer relationships.”
Rothsay had EBITDA of approximately $85 million in 2012. Proceeds from
the transaction of approximately $645 million will initially be used to
pay down debt. Upon completion of the prepared meats strategy,
management will consider appropriate deployment of excess capital,
including reinvesting in its core consumer packaged food businesses or
returning excess capital to shareholders.
Rothsay is the leading rendering company in Canada and a leading
producer of biodiesel. The business operates six rendering plants
located in Manitoba, Ontario, Quebec and Nova Scotia and a biodiesel
facility in Quebec. It employs approximately 550 people, who will
transition to Darling once the transaction closes. Maple Leaf plans to
enter into a long term contract with Darling to receive by-products
recycling services at competitive market rates.
Darling International Inc. is the largest and only publicly traded
provider of rendering and bakery residuals recycling solutions to the
U.S. food industry. The Company recycles beef, poultry and pork
by-product streams into useable ingredients such as tallow, feed-grade
fats, meat and bone meal, poultry meal and hides. The Company also
recovers and converts used cooking oil and commercial bakery residuals
into valuable feed and fuel ingredients. These products are primarily
sold to agricultural, pet food, leather, oleo-chemical and biodiesel
manufacturers around the world. In addition, the Company provides
grease trap collection services and sells used cooking oil collection
equipment to restaurants.
Maple Leaf Foods Inc. is a leading food company headquartered in
Toronto, Canada. The Company employs approximately 19,500 people at its
operations across Canada and in the United States, the United Kingdom
and Asia. The Company had sales of $4.9 billion in 2012.
SOURCE: Maple Leaf Foods Inc.
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SOURCE: Maple Leaf Foods Inc.
Investor Contact: Michael Vels, CFO 416-926-2028 Media Contact: Dave Bauer 416-926-2020