MISSISSAUGA, ONT. – Maple Leaf Foods Inc. is breaking up. The company’s board of directors has approved a plan to spin off the company’s pork business and create two publicly traded companies.
“This transaction is the start of a new era to unlock the full potential of two outstanding businesses, each with a distinct value proposition and growth opportunities,” said Curtis Frank, president and chief executive officer of Maple Leaf Foods. “As separate companies, Maple Leaf Foods and the new pork company will each have exciting prospects, a sharpened execution focus with its own dedicated management team, and the financial independence to pursue its own value creation strategy, all with an uncompromising commitment to safety and sustainability.”
Maple Leaf Foods will retain 19.9% of the to-be-named pork company and the two businesses will enter into a pork supply agreement that will provide raw materials for Maple Leaf’s prepared foods business.
The separation is scheduled to be completed in 2025 and, in the end, will leave Maple Leaf Foods as a consumer packaged goods company with such brands as Maple Leaf, Schneider’s, Greenfield, LightLife, Lunch Mate and others.
The pork company will continue to supply raw materials and value-added pork products in North America. In addition to the supply agreement with Maple Leaf Foods, the business will enter into a brokerage agreement to use the company’s North American sales network.
Maple Leaf Foods will continue to be led by Frank, Adam Grogan, president and chief operating officer, and David Smales, chief financial officer.
The new pork company will be led by Dennis Organ, incoming CEO. He joined Maple Leaf Foods in February 2023 as president, Pork Complex.
“This is the right transaction at the right time as we move forward with our sustainability vision, seeking to create value for all stakeholders,” said Michael H. McCain, executive chair of Maple Leaf Foods. “Under Curtis’ leadership, Maple Leaf Foods is on a path to deliver best-in-class consumer packaged goods performance, while the new pork company, under the leadership of Dennis, will be unleashed to leverage its unique capabilities and industry-leading performance to take advantage of new prospects for growth.”
