Maple Leaf Foods has announced it will buy the Puratone Corporation, the cash-strapped Manitoba hog production company, for approximately $42 million. The purchase includes Puratone’s livestock, facilities and interests in some joint ventures. The transaction is expected to close within a month, subject to court and regulatory approvals, according to a news release. .
“This acquisition will ensure a consistent supply of hogs to our processing facility in Brandon, which is an integral supplier to our value added prepared meats and pork business,” said Michael H. McCain, President and CEO.
“The agreement reached with Maple Leaf represents a tremendously positive outcome and we are very pleased with the stability it provides our stakeholders, particularly our employees,” said Ray Hildebrand, president and CEO, Puratone Corporation.
Puratone operates about 50 barns in the province of Manitoba in proximity to Maple Leaf’s Brandon plant and produces approximately 500,000 hogs annually. Puratone also operates three feed mills. With this acquisition, Maple Leaf will own approximately 30% of its hog supply into Brandon and produce approximately 1.2 million hogs annually.
Maple Leaf Foods Inc., headquartered in Toronto, employs approximately 19,500 people at its operations across Canada and in the United States, the United Kingdom, and Asia. The Company had sales of $4.9 billion in 2011