December 1, 2006

Maple Leaf says it plans to divest feed business

Maple Leaf Foods announced Thursday (Nov 30) that the company has retained RBC Capital Markets as its financial advisor to assist in the divestiture of its Maple Leaf Animal Nutrition and related businesses.

The process will entail a solicitation of interest from potential purchasers and is expected to begin in January, a release from Maple Leaf said.

"The decision to divest of this business results from a reorganisation of the Company's protein value chain operations, which includes our feed business, to focus on growth in the value-added meats and meals markets. Operating a largely independent animal nutrition company is strategically not aligned to this new model," said Michael Vels, Chief Financial Officer of Maple Leaf Foods.

Maple Leaf Animal Nutrition is Canada's leading animal nutrition organization, supported by well known and trusted brands, including Shur-Gain in Eastern Canada and Landmark Feeds in Western Canada.

Excluding assets that will be retained to service its own hog production operations in Western Canada, the business has sales of approximately C$650 million and provides a broad range of animal nutrition products and services including swine, dairy, beef, poultry, aquaculture and pet food.