Maple Leaf Foods moves forward with Canada Packers spin-off, operational restructuring

USA – Maple Leaf Foods Inc. is making progress in its plans to spin off its pork business, Canada Packers, as part of a broader restructuring initiative. 

The company has completed the first stage of its restructuring process and is now focusing on finalizing the separation of the pork division. 

The spin-off, structured to qualify as a tax-free transaction under Canadian regulations, is expected to strengthen the company’s operational structure and financial performance.

Curtis Frank, president and CEO of Maple Leaf Foods, highlighted 2025 as a pivotal year for the company, pointing to ongoing preparations for the separation. 

We are making steady progress on the business and operational plans, ensuring we are fully prepared once regulatory approvals are in place,” he said. 

The transaction is expected to be completed in the second half of 2025, pending approval from the Canada Revenue Agency (CRA). The company has already submitted the necessary application for review.

Shareholders will be asked to vote on the proposed spin-off during a meeting planned for June 2025. 

Frank stated that current market conditions, particularly the stabilization of pork prices, provide an opportune time for the transition. 

The company believes the separation will deliver distinct advantages to both Maple Leaf Foods and Canada Packers, benefiting their respective stakeholders.

As part of its 2025 strategic roadmap, Maple Leaf Foods aims to achieve mid-single-digit revenue growth, supported by ongoing capital investments and supply chain improvements. 

The company projects significant gains in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which it estimates will reach approximately US$470 million. 

It also plans to use cash flow from operations to reduce debt.

The company is ramping up marketing to address increasing consumer demand for protein products and expanding its footprint in the United States. 

Maple Leaf Foods expects these efforts, coupled with cost-cutting measures and a streamlined structure, to contribute to a stronger performance in 2025, with its EBITDA projections surpassing industry forecasts.

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