CANADA – Thai based food products company, CP Foods (Charoen Pokphand Foods) has reached an agreement to acquire Canadian pork producer, HyLife for US$370 million (CAD 498 million).
CP Foods will take control of 50.1% of the company’s shares while Japan’s Itochu will continue holding the remaining 49.9% of the shares.
The companies aim to harness synergies and growth as they both have strong global food distribution networks.
For HyLife, CP Foods deals opens up new markets and opportunities in the fast-growing Asian, North American and international markets.
“This is a win-win for HyLife, CPF and Manitoba’s agricultural industry,” said Grant Lazaruk, Chief Executive Officer of HyLife.
“Together, our globally established companies will significantly strengthen our market position.
“Not only do we share similar values, but our strategies also correspond with one another.
“Through this agreement, we will build on the success of our growing pork business and brands to our customers globally, including our fresh chilled pork products to Japan which we proudly grow and process right here in Manitoba.”
HyLife and CPF will leverage their shared corporate values of environmental friendliness and social responsibility while investing in their employees, customers, and communities.
The companies noted that combining forces will propel the growing demand for HyLife’s high-quality pork and enable the company to grow its current 2,500+ employee workforce.
The transaction which is subject to regulatory and customary conditions is expected to close during the third quarter of 2019.
“This new agreement will ensure continued job creation across the province and beyond as well as promote increased demand for our value-added pork,” said Claude Vielfaure, President of HyLife.
“The Province of Manitoba has been open for business and has empowered our company to attract foreign investment and to enable us to grow our integrated pork company domestically and internationally.
“We are proud to put Manitoba on the world map and look forward to continuing our outstanding relationship with suppliers, partners and communities across Manitoba.”
Charoen Pokphand Foods (CPF) engages in the Agro-industrial and integrated food businesses and is Thailand’s largest meat and feed producer with operations in 14 countries.
In 2016, the company acquired U.S. frozen-food producer Bellisio Foods for US$1.07 billion.