Giannone Poultry buying Quebec plant from Maple Leaf
As part of the sale, the two companies have reached a three-year supply agreement that will allow Maple Leaf Foods to maintain its supply of fresh chicken.
The business counts some one hundred employees.
Maple Leaf Foods acquired the plant and supply in 2018 with the purchase of select Cericola Farms assets. Maple Leaf Foods will continue to own and operate the Bradford, Ont., poultry plant that was also acquired in connection with the 2018 Cericola purchase.
The sale of the Drummondville plant is expected to close this summer subject to normal closing conditions and usual regulatory processes.
“Core to Maple Leaf’s strategy is sustainable and value-added meat protein products,” said Michael McCain, president and CEO of the company. “Over the past few years, our leadership position in this category has grown; however, we are focused on prioritizing capital and optimizing our processing network. The sale of the Drummondville facility is an outcome of our continued network optimization.”
“The agreement is in line with our growth objective and will help slightly increasing our production volume,” said Bruno Giannone, vice-president and CEO of Volaille Giannone. “This transaction will also strengthen our marketing capacities to better meet our customers’ needs.”
Maple Leaf Foods Inc. employs approximately 13,000 people and does business in Canada, the U.S. and Asia. The company is headquartered in Mississauga, Ont., and its shares trade on the Toronto Stock Exchange under the ticker symbol MFI.
Volaille Giannone is a family business specializing in poultry slaughtering and cutting. The company serves both the Quebec and Canadian markets as well as north-eastern United States. The company employs more than 250 people.