Maple Leaf Foods to divest poultry plant in Quebec

Canadian firm Maple Leaf Foods has announced the sale of a poultry plant in Drummondville, as well as associated supply, to Giannone Poultry in Quebec.

According to the deal, Giannone will supply fresh chicken to Maple Leaf Foods for a three-year period, which will enable the latter to maintain supplies.

Maple Leaf Foods president and CEO Michael McCain said: “Core to Maple Leaf’s strategy is sustainable and value-added meat protein products.

“Over the past few years, our leadership position in this category has grown; however, we are focused on prioritising capital and optimising our processing network. The sale of the Drummondville facility is an outcome of our continued network optimisation.”

In 2018, Maple Leaf Foods acquired the plant and supply as part of the purchase of selected Cericola Farms assets.

The company noted that it will continue to operate the Bradford, Ontario, poultry facility, which was also part of Cericola Farms assets.

Expected to take place this year, completion of the deal is subject to normal closing conditions and usual regulatory processes.

Financial details of the deal have not been disclosed by either company.

In April, Maple Leaf Foods suspended operations at its Brampton Poultry plant in Ontario, after three people working at the facility were infected with Covid-19.

The company noted that the decision to shut the operations at the facility was taken out of an abundance of caution and to complete an investigation. It also ordered a complete investigation and a deep clean as quickly as possible.