Back to Media

Maple Leaf Foods Announces Definitive Agreements to Sell its Turkey Growing Operations

TORONTO, Jul 22, 2013, 2013 (Canada NewsWire via COMTEX) –TSX: MFI

Maple Leaf Foods (MFI: TSX) today
announced that it has entered into definitive agreements to sell the
Company’s commercial turkey farms to Ernald Enterprises Limited and its
breeder farms and hatchery operation to Cuddy Farms Limited. The
transactions are expected to close by the end of July.

Maple Leaf’s turkey growing operations employ more than 100 employees in
southern Ontario. They include a hatchery and six breeder farms that
supply turkey eggs and poults (day-old turkeys) to domestic and
international markets and six commercial farms that supply market-ready
live birds to Maple Leaf’s turkey processing facility in Thamesford,
Ontario. The terms of the transaction include a long-term supply of
live birds to Maple Leaf from Ernald Enterprises. The vast majority of
employees will transition to Ernald Enterprises and Cuddy Farms once
the transactions close.

“Divesting our turkey growing operations will allow us to focus on, and
direct capital to, growth and innovation in our valued added turkey
processing business,” said Michael H. McCain, President and CEO, Maple
Leaf Foods. “The transaction ensures a long-term supply of high quality
turkeys at competitive prices. I’d like to thank our people who work in
these operations for their dedication to our business. They are joining
two organizations who are leaders in Canada’s turkey growing industry.”

Cuddy Farms is a leading producer and distributor of commercial turkey
eggs and poults in Canada. The Company distributes products nationally
and to more than twenty countries including Germany, Mexico, Russia,
Italy, Turkey, Poland, Austria, Holland, Hungary and the Baltic States.

Ernald Enterprises Ltd. owns 1,200 acres of agricultural land and
operates five commercial turkey and chicken growing operations in
southern Ontario. They are a current supplier to Maple Leaf Foods’
turkey processing operations.

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.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2013/22/c8765.html

SOURCE: Maple Leaf Foods Inc.

Investor Contact: Nick Boland, VP Investor Relations: 416-926-2005 Media Contact:
Dave Bauer, 905-285-1510