TORONTO, Nov 09, 2010 /PRNewswire via COMTEX/ —
Maple Leaf Foods Inc. (TSX : MFI) announced today that it is proceeding
with the sale of 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. The
transaction is expected to close within the next few 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
The transaction includes a long-term contract with Maple Leaf Foods’
rendering operations. The Company’s prepared meat operations in
eastern Canada will continue to be an important customer for the
Upon completion of this sale, Maple Leaf Foods will reduce its annual
pork processing from over 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
headquartered in Toronto, Canada. The Company employs approximately
23,500 people at its operations across Canada and in the United States,
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.
SOURCE Maple Leaf Foods Inc.