Maple Leaf Foods delays sale of Ontario pork processing business
Published:07-April-2009
By Datamonitor staff writer
To refocus its growth in the value-added meat, meals and bakery businesses
Maple Leaf Foods has announced that it does not plan to continue a formal sale process of its pork processing business located in Burlington, Ontario until markets rebound, which is not likely to happen before early 2010.
The company has said that despite active negotiations with several prospective purchasers, current economic conditions and credit markets have made it difficult to complete a satisfactory sale of its Ontario pork processing business.
Michael Vels, chief financial officer of Maple Leaf Foods, said: "The current economic conditions and credit markets have created a less than ideal environment to sell any business. There is no immediate urgency to selling the Burlington business. It is an efficient and profitable business and we want to ensure we negotiate an offer that recognizes the appropriate value for the business and meets the expectations of our shareholders."
The decision to sell the Burlington business resulted from the company's decision to refocus its growth in the value-added meat, meals and bakery businesses in October 2006, involving the divestiture or exit of several of its primary processing and other operations. The Burlington sale remains an important element of Maple Leaf's protein business transformation.
