Strategic Acquisition Enhances Security of Supply and Offers Another Pillar in the Company’s Dynamic Growth Plans for its Pork Business
aple Leaf Foods Inc. (“Maple Leaf Foods”) (TSX: MFI) today announced that it has reached an agreement to purchase four pig farms in central Saskatchewan from a group of companies known as Polar Pork. The acquisition will enhance Maple Leaf Foods’ overall pig supply and substantially increase its pig production capacity in the province.
The purchase, which is expected to close in June 2022 subject to satisfaction of closing conditions, includes two sow barns and two nursery barns with the potential to supply approximately 140,000 pigs to Maple Leaf Foods. The security of supply that this strategic acquisition provides to Maple Leaf Foods is directly tied to its plans to continue to grow production at its flagship pork processing plant in Brandon, Manitoba in order to increase its supply of high-quality meat to key customers in domestic and international markets.
“This purchase offers us ready access to some of the healthiest hogs in Saskatchewan that will allow us to enhance our deliveries of high-quality pork to customers in Canada and Asia,” said Michael Detlefsen, President of the Maple Leaf Foods Pork Complex. “Bringing these barns into Maple Leaf Foods aligns with our strategy to pursue growth both domestically and abroad.”
“We are very impressed with the skill the Possberg family and the team at Polar Pork have brought to the operation of these barns,” Detlefsen added. “Based on this foundational work, Maple Leaf Foods is well positioned to build on its strengths and high standards to raise healthy pigs in Saskatchewan and produce high quality pork.”
In total, Maple Leaf Foods expects to invest up to $27 million in the barns over time, inclusive of acquisition costs and capital investments to maximize capacity and add further animal care enrichments.
About Maple Leaf Foods
Maple Leaf Foods Inc. is a carbon neutral company with a vision to be the most sustainable protein company on earth, responsibly producing food products under leading brands including Maple Leaf®, Maple Leaf Prime®, Maple Leaf Natural Selections®, Schneiders®, Schneiders® Country Naturals®, Mina®, Greenfield Natural Meat Co.®, Lightlife®, Field Roast™ and Swift®. Maple Leaf Foods employs approximately 13,500 people and does business in Canada, the U.S. and Asia. The company is headquartered in Mississauga, Ontario, and its shares trade on the Toronto Stock Exchange (MFI).