TSX: MFI
www.mapleleaffoods.com
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.