February 22, 2010

Sofina Foods to acquire Lilydale

Canadian food processor Sofina Foods is to acquire Lilydale in a transaction valued at over C$130 million (US$125 million).

Sofina Foods Inc. and Lilydale Inc. have signed an agreement under which Lilydale will become a wholly owned subsidiary of Sofina Foods. The transaction is expected to close in April 2010.

Alberta-based Lilydale is a nationally recognised consumer food company with leading consumer brands in fresh and frozen poultry, deli, sausage and meat snacks.

Privately owned Sofina Foods, manufactures and distributes further processed pork, beef and poultry products for retail and food service customers in Canada, the US and Japan.

The combination of Sofina and Lilydale will create a strong company in the Canadian meat industry with combined sales revenue exceeding C$800 million (US$769 million) and a workforce of over 3,300 employees.

The businesses are complementary with Lilydale's strengths in Western Canada and primary processing of poultry being combined with Sofina's strengths in Eastern Canada and further processed products of beef, pork and poultry. As a result, the combined business will supply retail and food-service markets across Canada and into the western US with 12 manufacturing facilities in both primary and further processing operations in British Columbia, Alberta, Saskatchewan, Ontario and Washington State.

Sofina will invest a further C$20 million (US$19.2 million) over the next two years into Lilydale to support operations and facility improvements.