Maple Leaf Foods plans to split into two independent public companies
It's one of many companies to recently streamline operations
10 July 2024
2 minute read
By: Maple Leaf Foods is splitting into two independent public entities by spinning off its pork business, it said on Tuesday, joining a host of companies that have demerged their businesses to streamline operations and realise more value, reported Reuters.
Globally, several companies including most recently chemical maker DuPont have moved to break up their businesses in an attempt to increase profitability and revenue growth.
Maple Leaf Foods, which makes ready-to-serve foods like Ready Crisp bacon, will retain a 19.9% ownership position in the newly formed pork company, the name of which will be announced in the coming months, the company said.
The spinoff company will enter into a pork supply agreement with Maple Leaf Foods and will continue to supply pork at market prices to meet the needs of the prepared foods business.
Maple Leaf Foods will in turn provide the new company with brokerage services in North America, as well as certain other services.
The owner of Schneiders, a premium meat products brand, said its separation plan has the support of McCain Capital and the McCain family, which has the largest and controlling stake in Maple Leaf Foods.
Maple Leaf Foods will continue to be led by CEO Curtis Frank, while Dennis Organ, who headed the pork business, will become the CEO of the new company.
The separation plan, which has been approved by the board of directors, is expected to be completed in 2025.
Upon completion of the separation, existing Maple Leaf Foods shareholders are expected to receive an equal part of shares in the new pork company.
