Maple Leaf Foods to separate pork business into independent public company
Maple Leaf Foods will retain a 19.9 per cent ownership position in the new pork company, and the two companies will enter into an evergreen pork supply agreement.
July 10, 2024 | By MRO Staff
Consumer-packaged meats and food production company Maple Leaf Foods Inc. has announced plans to split the business into two independent public companies: the pork business will be spun off into a new publicly traded company, while Maple Leaf will be a more focused brand-led consumer packaged goods (CPG) company.
“As separate companies, Maple Leaf Foods and the new pork company will each have exciting prospects, a sharpened execution focus with its own dedicated management team, and the financial independence to pursue its own value creation strategy, all with an uncompromising commitment to safety and sustainability,” Curtis Frank, president and CEO of Maple Leaf Foods, said in a statement.
Maple Leaf Foods will retain a 19.9 per cent ownership position in the new pork company, and the two companies will enter into an evergreen pork supply agreement.
Maple Leaf Foods will continue to be led by Curtis Frank, president and CEO; Adam Grogan, president and COO; and David Smales, CFO. The new pork company will be led by Dennis Organ, incoming CEO of the new pork company.
“This is the right transaction at the right time as we move forward with our sustainability vision, seeking to create value for all stakeholders,” said Michael H McCain, executive chair of Maple Leaf Foods. “Under Curtis’ leadership, Maple Leaf Foods is on a path to deliver best-in-class consumer packaged goods performance, while the new pork company, under the leadership of Dennis, will be unleashed to leverage its unique capabilities and industry-leading performance to take advantage of new prospects for growth.”
The transaction, which is subject to shareholder approval, is expected to be completed in 2025.
Maple Leaf Foods is headquartered in Mississauga, Ont.
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