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Maple Leaf Foods to Spin Off Pork Business, Sharpen Its CPG Focus

July 9, 2024
Maple Leaf Foods will focus on being a brand-led consumer packaged goods company while the new pork business will branch off on its own path forward.

Mississauga, Ontario-based Maple Leaf Foods Inc. will spin off its pork business and split into two independent companies, according to an announcement released by the company. Maple Leaf Foods will continue as a brand-led consumer packaged goods company focused on providing sustainably produced protein to consumers and customers.

The yet-to-be-named pork business will be spun off in order to take better advantage of its own unique business model and unlock significant growth potential, the company said.

Curtis Frank, president and CEO of Maple Leaf Foods, said each company faces “exciting prospects” on their own. Frank took over the leadership post of the company in May 2023 from Michael McCain, who moved into the executive chairman role after 25 years leading Maple Leaf Foods.

The two new companies will enter into an evergreen pork supply agreement after the spinoff to support Maple Leaf Foods’ prepared foods business, and Maple Leaf Foods will retain a 19.9% ownership position in the pork company.

The separation of the companies is expected to be completed in 2025, with Frank staying at the helm of Maple Leaf Foods along with Adam Grogan, president and COO, and David Smales, CFO. The new pork company will be led by pork industry veteran Dennis Organ, who joined Maple Leaf Foods in February 2023 to be president, Pork Complex.

According to Maple Leaf Foods estimates for the 12 months ending March 31, 2024, the new pork company would have racked up about $1.65 billion in sales (Canadian dollars), while the new Maple Leaf Foods business would have tallied approximately $3.55 billion (Canadian) in sales. Pro forma adjusted EBITDA for the pork company would have been approximately $70 million (Canadian) for the period — or approximately $180 million (Canadian) when adjusted for normal market conditions, defined as the 5-year pre-Covid pandemic (2015-2019) average.

Pro forma adjusted EBITDA for the new Maple Leaf Foods company — excluding the pork business — for the 12 months ending March 31, 2024, would have been approximately $395 million, the release said.

About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.

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