- Maple Leaf Foods Inc. (TSX:MFI) is planning to spin off its pork business into a new publicly traded company
- The company is intending to separate into two independent public businesses, each with a sharper focus to execute their own growth strategies, aimed at enhancing the company’s focus on brand-led consumer packaged goods
- Under the proposed plan, existing Maple Leaf shareholders will receive shares in the new pork company, while Maple Leaf Foods will retain a 19.9 per cent ownership stake
- Maple Leaf Foods Inc. last traded at C$22.45 per share
Maple Leaf Foods Inc. (TSX:MFI) is planning to spin off its pork business into a new publicly traded company.
The Mississauga-based food processing company is intending to separate into two independent public companies, each with a sharper focus to execute their own growth strategies, aimed at enhancing the company’s focus on brand-led consumer packaged goods.
Maple Leaf Foods’ chief executive Curtis Frank emphasized the benefits of the split in a news release, stating, “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.”
Under the proposed plan, existing Maple Leaf shareholders will receive shares in the new pork company, while Maple Leaf Foods will retain a 19.9 per cent ownership stake. The two entities intend to sign an evergreen pork supply agreement, ensuring a secure supply of pork at market prices for Maple Leaf Foods’ prepared foods business.
Leadership for both companies has been established, with Curtis Frank continuing as CEO of Maple Leaf Foods, and Dennis Organ, who joined the company as president of the pork complex in February 2023, set to lead the new pork company.
The board of directors has approved the spin-off plan, which also has the backing of the company’s largest and controlling shareholder, McCain Capital Inc., and the McCain family. executive chair Michael McCain expressed strong support for the move, calling it “the right transaction at the right time.”
“I am passionate about both of these businesses and have absolute confidence in the powerful potential of this transaction,” McCain added. “Our shareholders will be able to participate in not one, but two strong, independent, sustainable, and purpose-driven businesses, each with a clear mandate and investment profile, and all our stakeholders will participate in the shared value we will generate.”
The transaction is expected to be completed in 2025, pending shareholder approval.
Maple Leaf Foods’ portfolio includes prepared meats, ready-to-cook and ready-to-serve meals, snacks kits, value-added fresh pork and poultry and plant protein products.
Maple Leaf Foods Inc. (TSX:MFI) last traded at C$22.45 per share.
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(Top photo: Maple Leaf Foods)
