News 636 views last update:7 Aug 2012

Maple Leaf Foods to divest animal nutrition business

Toronto, Canada based Maple Leaf Foods said it has retained RBC Capital Markets as its financial advisor to assist in the divestiture of its animal nutrition business. The process will entail a solicitation of interest from potential purchasers and is expected to begin in January 2007.

"The decision to divest of this business results from a reorganisation of the Company's protein value chain operations, which includes our feed business, to focus on growth in the value added meats and meals markets," said Michael Vels, Chief Financial Officer of Maple Leaf Foods. "Operating a largely independent animal nutrition company is strategically not aligned to this new model. Maple Leaf Animal Nutrition is an outstanding business built by a highly experienced management team and employees, with long-standing customer relationships, world-class animal nutrition R&D technology, and excellent growth prospects that will be best realized through the sale of this business."

Leading Canadian feed maker
Maple Leaf Animal Nutrition is Canada's leading animal nutrition organisation, supported by well known and trusted brands, including Shur-Gain in Eastern Canada and Landmark Feeds in Western Canada.

Excluding assets that will be retained to service its own hog production operations in Western Canada, the business has sales of approximately $650 million (US$ 570m) and provides a broad range of animal nutrition products and services including swine, dairy, beef, poultry, aquaculture and pet food.

Its strong customer relationships and leading market shares are supported by a world class research farm in Burford, Ontario, and ongoing investments in research and development to continuously improve animal health and performance.

Maple Leaf Foods Inc. is a leading Canadian food processing company committed to delivering quality food products to consumers around the world. Headquartered in Toronto, Canada, the Company employs approximately 24,000 people at its operations across Canada and in the United States, Europe and Asia. The Company had sales of $6.1 billion (US$ 5.35b) in 2005.

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