April 16, 2009
Canadian gov't seeks buyer for Thomson Meats
The provincial government in Saskatchewan, in Canada, is getting more assertive in seeking a buyer for Thomson Meats Ltd. of Melfort.
Saskatchewan Agriculture spokesperson Mitch Demyen said the meat processing company has been on the market for about a year and there has been some interest shown by potential buyers but no deals yet.
The government has been attempting to sell Thomson Meats through contacts in the industry.
Thomson Meats produces its own brand of processed and packaged meat products and provides processing services and products to other companies.
The government has been the sole shareholder in Thomson Meats for several years. The company which was originally family-owned struggled for years, prompting former governments to provide debt investment and equity investment.
The ministry said that the government will step up its efforts to sell Thomson Meats through a combination of public advertising and direct contact with potential buyers.
According to the Agriculture Ministry, Thomson Meats' sales are about US$3.1 million a year.
Thomson Meats was publicly traded on the Canadian Venture Exchange until 2001, when the province's Agri-Food Equity Fund (AFEF) took over.
AFEF was owed US$7 million by Thomson Meats, the operating company, and TML Foods Inc., the public entity.
The company went through considerable restructuring. After making a loss on attempting a launch into Asia with boxed and processed meats, Thomson retreated to the domestic market with processed meats. It also stopped selling boxed fresh meats to grocery stores which is a highly competitive area.
