Maple Leaf Foods is spinning off its pork business into a new public company, which will be named in the coming months.
Shareholders will receive shares in the new company, and Maple Leaf will maintain a 19.9 per cent ownership position.
“This transaction is the start of a new era to unlock the full potential of two outstanding businesses, each with a distinct value proposition and growth opportunities,” says Curtis Frank, president and CEO of Maple Leaf Foods. “As separate companies, Maple Leaf Foods and the new Pork Company will each have exciting prospects, a sharpened execution focus with its own dedicated management team, and the financial independence to pursue its own value-creation strategy, all with an uncompromising commitment to safety and sustainability.”
Under this agreement, the new pork company will continue to provide Maple Leaf Foods with a secure supply of high-quality, sustainable pork at market prices, to meet the needs of its Prepared Foods business, providing the new pork company a strong anchor customer while allowing it to grow its already material business with customers around the world. Maple Leaf Foods says it will in turn provide the new pork business with brokerage services in North America, as well as certain other services.
- Source: CNW Group Ltd.
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