Maple Leaf Foods is undergoing a significant transformation in the food and beverage industry, as it announces the spin-off of its pork business to create two distinct public-listed entities. This strategic move aims to unlock the growth potential of both businesses, paving the way for enhanced focus and dedicated management teams. The separation is anticipated to be finalized next year, signaling a new era for Maple Leaf Foods.
President and CEO Curtis Frank expressed enthusiasm about the opportunities that lie ahead for Maple Leaf Foods and the new pork company. He highlighted the prospects for each entity to pursue its unique value proposition and growth opportunities, emphasizing the financial independence to drive value creation strategies independently.
The board, along with Maple Leaf’s major shareholder, the McCain family, owner of the renowned French fries brand, have approved the separation. Maple Leaf will retain a 19.9% interest in the new pork company, ensuring continued collaboration and support between the two entities.
Dennis Organ, a seasoned executive with experience at Smithfield Foods, will assume the role of CEO for the pork business. Executive chair Michael McCain conveyed confidence in the transaction, foreseeing the creation of two strong, sustainable, and purpose-driven businesses that will generate shared value for stakeholders.
As Maple Leaf realigns its operations, the new pork company is positioned to capitalize on growth opportunities through strategic investments. With a focus on organic and inorganic expansion, the pork business is projected to achieve significant growth, with an estimated adjusted EBITDA of around C$70m to C$180m.
Beyond pork, Maple Leaf’s other business arm will encompass meat and alternative-protein assets, including well-known brands like Field Roast and Lightlife. With a strong presence in the food and drink consumer trends market, Maple Leaf Foods is poised for continued success and innovation in the evolving landscape of the food and beverage industry.
