Canada’s Competition Bureau has approved the acquisition of pork producer F. Ménard by La Coop Fédérée and its divisions Olymel and Sollio Agriculture.
The deal includes all assets of Quebec-based F. Ménard in the pork and milling sectors, including its hog farms, pork processing plants, two specialized butcher shop, as well as two mills. F. Ménard is also involved in the poultry production sector, but these activities are not part of the agreement.
Ménard currently employs over 1,200 people and has an annual production of over 1.1 million hogs, which the company claims accounts for more than 15% of Quebec’s pork production.
According to the Canadian agri-food business, the transaction will strengthen La Coop Fédérée’s position in domestic and international markets, while F. Ménard claims it is the ‘best possible solution for the continued growth of the company’.
The initial acquisition was announced on 9 July 2019 for an undisclosed amount but was subject to approval by the Competition Bureau.
Ghislain Gervais, president of La Coop Fédérée said: “By acquiring F. Ménard, Olymel and Sollio Agriculture will provide Canada with one of the biggest agri-food companies in both the meat and milling sectors. This acquisition strengthens our ability to compete with world-class companies and consolidate our position in domestic and international markets.”
“Together we will be even better equipped to grow in new directions, meet market challenges, enhance the pork industry, serve our customers with quality products and face the competition,” said Réjean Nadeau, president and CEO of Olymel.
Sollio Agriculture’s CEO, Sébastien Léveillé said: “We are pleased to consolidate Sollio Agriculture’s footprint in Quebec with this transaction. Although we are increasingly active elsewhere in the country, the Quebec market remains of vital importance to our team. Thanks to Sollio Agriculture’s expertise, we will be able to leverage F. Ménard’s know-how and thus contribute to Olymel’s continued success here in Quebec.”
Executive director of F. Ménard Luc Ménard said he will remain with the company to ensure a smooth transition, and is confident that the transaction will allow the company to continue to serve its customers with excellent products and engage in beneficial relationships with its suppliers.
Earlier this year, La Coop Fédérée secured CAD300m ($229.1m) in funding from four investors to support its acquisition strategy.
The transaction is expected to close on 6 January 2020.