Maple Leaf Announces Definitive Agreement to Purchase Puratone
TORONTO, Nov. 1, 2012 /PRNewswire/ - Maple Leaf Foods (MFI: TSX) today announced that it has entered into a definitive agreement to acquire the Puratone Corporation, a leading Manitoba hog production company, for approximately $42 million including livestock, facilities and interests in some joint ventures. The transaction is expected to close within a month, subject to court and regulatory approvals.
"This acquisition will ensure a consistent supply of hogs to our processing facility in Brandon, which is an integral supplier to our value added prepared meats and pork business," said Michael H. McCain, President and CEO. "We look forward to welcoming Puratone employees to Maple Leaf and benefiting from their experience and strong commitment to best practices."
"The agreement reached with Maple Leaf represents a tremendously positive outcome and we are very pleased with the stability it provides our stakeholders, particularly our employees," said Ray Hildebrand, President and CEO, Puratone Corporation.
Puratone operates about 50 barns in the province of Manitoba in proximity to Maple Leaf's Brandon plant and produces approximately 500,000 hogs annually. Puratone also operates three feed mills that provide a dedicated high quality supply to support their hog production operations. With this acquisition, Maple Leaf will own approximately 30% of its hog supply into Brandon and produce approximately 1.2 million hogs annually. An integration team will lead the process of thoughtfully integrating both operations. No immediate changes are anticipated.
"This investment reflects our ongoing commitment to securing a strong future for our value added pork operations in Manitoba, which are a vital part of the province's economy," concluded Mr. McCain. "We will continue to manage our operations with a strong commitment to best practices and environmental sustainability."
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 2011.
SOURCE Maple Leaf Foods Inc.