Maple Leaf to Purchase Hub Meat Packers/Larsen Packers
MONCTON, NEW BRUNSWICK--Maple Leaf Foods Inc. (TSE/ME: MFI) and Hub Meat
Packers Limited of Moncton, New Brunswick, today announced they have reached an
agreement for Maple Leaf Foods to purchase the Atlantic-based meat processing
company. The purchase price was not disclosed. Closing is subject to certain
regulatory and other approvals.
The acquisition includes the meat processing plants operated by Hub Meat
Packers Limited in Moncton, New Brunswick, and by Larsen Packers Limited in
Berwick, Nova Scotia. The Hub and Larsen brands are also included in the
acquisition. Hub Meat Packers currently has annual sales of approximately $270
No changes are currently planned for the businesses or their operations. Hub
and Larsen will continue as separate operating entities with current
management. David Rinzler will continue as President of Hub Meat Packers and
Karl R. Larsen will continue as President of Larsen Packers.
"My family has been in the meat processing business in this region for over
thirty years. For Hub and Larsen this represents the best possible opportunity
for us and our employees in the future as we will be strengthened by Maple
Leaf's North American competitiveness and access to international markets,"
said David Rinzler, President of Hub Meat Packers.
"This acquisition fits into our long-term strategy to develop a world-class,
Canadian-based meat processing operation that can compete effectively in an
increasingly global market," said Michael H. McCain, President and CEO, Maple
Leaf Foods Inc. "Hub and Larsen are highly respected businesses in Atlantic
Canada. We're very pleased to be making this strategic investment in Atlantic
Maple Leaf Foods is a leading, global, Canadian food processing company with
operations across Canada, in the United States, Europe and Asia. The company's
products include fresh and prepared meats, poultry, fresh and frozen bakery
products, seafood and animal feeds. Its products are sold to retail, food
service, wholesale, agricultural and industrial customers.
Hub Meat Packers Limited is a privately-owned business established by brothers
David, Harold, Gordon and Joseph Rinzler in 1966. The company employs
approximately 1,000 employees. The plant includes meat processing operations,
packaging and distribution. Brand names include Sunrise, Harvest Gold,
Gloucester, and Coachman.
Larsen Packers Limited is based in Berwick, Nova Scotia, and is majority-owned
by Hub Meat Packers, but operates as a separate company with approximately 400
employees. The plant produces fresh, processed and cured meat products, under
the brand names of Larsen, Simons, Brandywyne, Trim Cut and Lite n Low.
Hub and Larsen products are primarily marketed in eastern Canada with some
exports going to the United States, the Caribbean, Mexico and Asia.
A news conference with Michael McCain, David Rinzler and Karl Larsen will be
held at noon local time (11:00 a.m. in Toronto) in Petitcodiak at the Hotel
Beausejour, 750 Main Street, Moncton, New Brunswick.
Media outside the immediate area wishing to listen to the conference and ask
questions are invited to call 1-877-330-4540.
Please dial in 10 to 15 minutes in advance. While every effort will be made to
accommodate all media callers, line space is limited. The news conference and
question and answer session will be taped and available by calling
1-800-558-5253 (access #14401415).