Maple Leaf Foods - Update on sale process of Burlington business
TORONTO, April 2, 2009 /PRNewswire-FirstCall via COMTEX/ -- Maple Leaf Foods (MFI: TSX) today announced that despite active negotiations with several prospective purchasers, current economic conditions and credit markets have made it difficult to complete a satisfactory sale of its Ontario pork processing business located in Burlington, Ontario. As a result, the Company does not plan to continue a formal sale process until markets rebound, which will likely not be before early 2010.
"The current economic conditions and credit markets have created a less than ideal environment to sell any business," said Michael Vels, Chief Financial Officer of Maple Leaf Foods. "There is no immediate urgency to selling the Burlington business. It is an efficient and profitable business and we want to ensure we negotiate an offer that recognizes the appropriate value for the business and meets the expectations of our shareholders."
The decision to sell the Burlington business resulted from the Company's decision to refocus its growth in the value-added meat, meals and bakery businesses in October 2006, involving the divestiture or exit of several of its primary processing and other operations. The Burlington sale remains an important element of Maple Leaf's protein business transformation.
Maple Leaf Foods Inc. is a leading Canadian food processing company committed to delivering quality food products to consumers around the world. Headquartered in Toronto, Canada, the Company employs approximately 24,000 people at its operations across Canada and in the United States, Europe and Asia. The Company had sales of $5.2 billion in 2008.
SOURCE Maple Leaf Foods Inc.