Canada headquartered food processing company Maple
Leaf Foods, has sold its animal nutrition business to Nutreco Holding NV
for C$500 million (€3330m) plus normal closing adjustments. The transaction is
expected to close in July 2007.
Maple Leaf Animal Nutrition through its well-known
Shur-Gain brand in eastern Canada and Landmark brand in western Canada - is the
leader in animal nutrition technology and offers a wide range of products such
as complete feeds, premixes, feed speciality products, feed additives and pet
The business has strong, long-term customer relationships, an
ambitious and experienced management team and a sound financial track record.
The revenues are approximately C$650 million (€430m) and 2006 earnings before
interest and taxes of about C$47 million (€31m).
President and CEO of Maple Leaf Foods said the sale would permit the company to
focus on its core value added bakery, meats and meals businesses; significantly
de-leverage its balance sheet and provide the company flexibility to re-invest
in value added businesses.
Increased presence in North
For Nutreco this major acquisition fits in its core
business growth objectives. The animal nutrition business in North America is
the largest in the world and it has been a long standing ambition of Nutreco to
increase its presence in this important area.
The business is Canada's
leading animal nutrition supplier with an overall share of above 20%. Total
production in 2006 was 1.7 million tonnes of feed (5.9 million tonnes on a
compound feed equivalent basis).
It owns and operates 18 dedicated
feed manufacturing facilities. The company has approximately 1,200 employees in
eight Canadian provinces and New York State.
Nutreco's shares climbed €2.23, or 4.3%, to €54.62 in
Amsterdam, their biggest gain since June 23, 2006, valuing Nutreco at €1.9