Maple Leaf to Close Sale of Burlington Pork Processing Operation to an Affiliate of Sun Capital Partners INC.
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 producers."
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 facility.
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.