Maple Leaf Foods, the Canada-based food group, has sold a poultry plant in Quebec to local peer Volaille Giannone as the company seeks to “optimise” its processing network.
The facility is located in the city of Drummondville and the transaction, for an undisclosed sum, is expected to be completed this summer, subject to “closing conditions” and regulatory requirements, Toronto-listed Maple Leaf said in a statement. The agreement also includes a new three-year deal for the supply of fresh chicken by Volaille Giannone, which is based in St. Cuthbert, Quebec.
Maple Leaf said it acquired the plant in 2018 as part of a deal for a selection of assets of Cericola Farms but will continue to operate its facility in Bradford, Ontario, which it bought in the same transaction.
President and CEO Michael McCain added: “Over the past few years, our leadership position in this category has grown; however, we are focused on prioritising capital and optimising our processing network. The sale of the Drummondville facility is an outcome of our continued network optimisation.”
Meanwhile, Volaille Giannone said the Drummondville plant employs around 100 people, and will enable the business to increase production volumes by about 40%.
Its vice president and CEO Bruno Giannone added: “The agreement is in line with our growth objective and will help in slightly increasing our production volume. This transaction will also strengthen our marketing capacities to better meet our customers’ needs.”
Maple Leaf also produces plant-based protein products and formed a dedicated company in 2018, Greenleaf Foods, which also houses the recently acquired Field Roast Grain Meat Co. and Lightlife Foods.