Maple Leaf Foods will split and create two businesses, one focused on consumer-packaged goods and the other centered on pork.
Curtis Frank, President and CEO of Maple Leaf Foods, said by spinning off its pork business, Maple Leaf Foods will unlock significant growth potential by producing sustainable meat. He said the transaction is the start of a new era.
“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,” Frank said.
Maple Leaf Foods will retain a 19.9 per cent ownership in the new Pork Company. The two companies will enter into an evergreen pork supply agreement where the new Pork Company will continue to provide Maple Leaf Foods with a secure supply of pork at market prices, to meet the needs of its prepared foods business. Maple Leaf Foods will provide the new Pork Company with brokerage assistance in North America and certain other services.
Maple Leaf Foods will continue to be led by Curtis Frank. The new Pork Company will go forward with Dennis Organ as incoming CEO.
The changeover is expected to be completed in 2025 once the transaction is approved by shareholders at a special meeting as well as other regulatory approvals.
Click here to see more...