Maple Leaf Foods Set to Buy Manitoba Hog Company Puratone for $42 Million
Maple Leaf to Soon Own 30 Percent of Brandon, Manitoba’s Hog Supply
By Amanda Brodhagen, Farms.com
Maple Leaf Foods Inc. bought Puratone Corporation, a Manitoba hog producer for $42 million; the deal includes livestock and facilities. Puratone runs and operates 50 pig barns in Manitoba, operates three feed mills and produces approximately 500,000 hogs annually.
"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 McCain, president and CEO.
Maple Leaf anticipates that a legal agreement will be reached by the end of the month, as the deal is subject to both court and regulatory approvals. If the deal is legally successful, it will give Maple Leaf ownership of roughly 30 percent of the hog supply in Brandon, Manitoba.
The announcement comes in the midst of Maple Leaf reporting on Wednesday, that company’s net earnings fell to $32.6 million representing 22 cents per share in the third quarter.
"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,” McCain said in a statement.