Maple Leaf Foods to spin off its world-leading pork business
On July 9, 2024, Maple Leaf Foods Inc. (“Maple Leaf Foods”) announced a plan to unlock significant value by separating into two independent public companies, each primed for growth and positioned to be a leader in its field.
Under the plan, Maple Leaf Foods will continue to pursue its vision to be the most sustainable protein company on Earth, now as a more focused, brand-led consumer packaged goods company. The new pork business, the name of which will be announced in the coming months, will in turn unlock its own growth potential by taking advantage of its own unique business model. Maple Leaf Foods will retain a 19.9% ownership position in the new company, and the two companies will enter into an evergreen pork supply agreement which will deliver value for both businesses.
The plan to proceed with the separation has been approved by the Board of Directors of Maple Leaf Foods, on the recommendation of a Special Committee of the Board, composed entirely of independent directors, and has the full support of Maple Leaf Foods’ largest and controlling shareholder, McCain Capital Inc. and the McCain family.
The transaction is expected to be structured as a return of capital spin-off. To the extent that shares of the new company (whether in whole or in part) cannot be distributed through a return of capital, it is anticipated that Maple Leaf Foods will distribute such shares of the new pork company as a dividend.
Completion of the transaction is expected to take place in 2025, subject to shareholder approval at a special meeting of Maple Leaf Foods’ shareholders, as well as other customary approvals, including the receipt of all required third-party consents.
Further information can be found on Maple Leaf Foods’ website.
Maple Leaf Foods is a carbon neutral company with a vision to be the most sustainable protein company on earth, responsibly producing 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® and Field Roast™.