CANADA – Meat and plant protein producer, Maple Leaf Foods Inc. has announced the sale of its poultry plant in Drummondville, Quebec, Canada and associated supply to local poultry producer Volaille Giannone.
As part of the sale, Maple Leaf Foods and Giannone have reached a three-year supply agreement that will allow Maple Leaf Foods to maintain its supply of fresh chicken.
Maple Leaf Foods acquired the plant and supply in 2018 with the purchase of select Cericola Farms assets. Maple Leaf Foods will continue to own and operate the Bradford, Ontario poultry plant that was also acquired in connection with the 2018 Cericola purchase.
The sale of the Drummondville plant is expected to close this summer subject to normal closing conditions and usual regulatory processes.
“Core to Maple Leaf’s strategy is sustainable and value-added meat protein products,” said Michael McCain, President and CEO.
“Over the past few years, our leadership position in this category has grown; however, we are focused on prioritizing capital and optimizing our processing network. The sale of the Drummondville facility is an outcome of our continued network optimization.”
Based in St. Cuthbert, Quebec, Volaille Giannone is a family-run poultry business which serves Canadian markets and the northeastern US.
The transaction will reportedly enable the company, which already owns a plant in St-Cuthbert (Lanaudière), to increase its production volume by 40%.
Volaille Giannone says that it commits to honoring existing supply agreements with poultry producers.
“The agreement is in line with our growth objective and will help slightly increase our production volume. This transaction will also strengthen our marketing capacities to better meet our customers’ needs,” Bruno Giannone, VP and CEO of Volaille Giannone, said.
Maple Leaf Foods Inc. is a producer of 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 Grain Meat Co. and Swift.
Maple Leaf employs approximately 13,000 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 under the ticker symbol MFI.
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