Maple Leaf Foods has purchased Puratone Cooperation in Niverville after the company filed for bankruptcy at the beginning of September.
By Marianne Curtis
On November 1, Maple Leaf Foods announced that it has entered into a definitive agreement purchase Puratone Corporation from Niverville. The buyout comes about a month and a half after the Niverville based company filed for bankruptcy protection.
In a transaction that is expected be complete within a month, Maple Leaf has agreed to shell out $42 million to purchase the company including livestock, facilities and interests in some joint ventures.
Ray Hildebrand, President and CEO of Puratone Corporation is pleased with the agreement.
“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,” stated Hildebrand. Three hundred and fifty jobs were at stake.
From the Maple Leaf standpoint, the move makes sense for the company, according to Michael McCain, President and CEO of Maple Leaf.
“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 McCain. “We look forward to welcoming Puratone employees to Maple Leaf and benefiting from their experience and strong commitment to best practices.”
Maple Leaf Foods Inc. is a leading food company, headquartered in Toronto. The company employs approximately 19,500 people at its operations across Canada, the United States, the United Kingdom and Asia. The company had sales of $4.9 billion in 2011.
Puratone began in 1973 as a small feed retailer and became a major feed supplier within Manitoba. Since then the company has grown into a major player in the pork industry with a system of 28,000 breeding sows and marketing over 500,000 hogs per year. There are over 50 farms dedicated to hog production, three feed mills that produce about 250,000 tonnes of feed annual and other agriculture related business interests.
With this acquisition, Maple Leaf will own approximately 30% of its hog supply into Brandon and produce approximately 1.2 million hogs annually. An integration team will lead the process of thoughtfully integrating both operations.
No immediate changes are anticipated.