MEAT+POULTRY - August 2024 - 10

BUSINESS NOTES
Maple Leaf
to spin off
pork business
Maple Leaf Foods Inc. is breaking up. In
July, the company's board of directors
approved a plan to spin off the company's
pork business and create two publicly
traded companies.
" This transaction is the start of a
new era to unlock the full potential of
two outstanding businesses, each with
a distinct value proposition and growth
opportunities, " said Curtis Frank,
president and chief executive officer of
Maple Leaf Foods.
" As separate companies, Maple
Leaf Foods and the new pork company
will each have exciting prospects, a
sharpened execution focus with its own
dedicated management team, and the
financial independence to pursue its
own value creation strategy, all with an
uncompromising commitment to safety
and sustainability, " he added.
Maple Leaf Foods will retain 19.9%
of the to-be-named pork company and
the two businesses will enter into a pork
supply agreement that will provide raw
materials for Maple Leaf's prepared foods
business.
Michael H. McCain, executive chair of
Maple Leaf Foods, said he is passionate
about both of these businesses and has
absolute confidence in the powerful
potential of this transaction.
" Our shareholders will be able to
participate in not one, but two strong,
independent, sustainable and purposedriven
businesses, each with a clear
mandate and investment profile, and all
our stakeholders will participate in the
shared value we will generate, " he stated.
10 MEAT+POULTRY | 08.24 | www.meatpoultry.com
The separation is scheduled to be
completed in 2025 and, in the end, will
leave Maple Leaf Foods as a consumer
packaged goods company with such
brands as Maple Leaf, Schneider's,
Greenfield, LightLife, Lunch Mate and
others. The pork company will continue to
supply raw materials and value-added pork
products in North America. In addition
to the supply agreement with Maple Leaf
Foods, the business will enter into a
brokerage agreement to use the company's
North American sales network.
Maple Leaf Foods will continue to be
led by Frank, Adam Grogan, president and
chief operating officer, and David Smales,
chief financial officer. Dennis Organ will
lead the new pork company as CEO.
" We have seen positive momentum in
the business in recent quarters as pork
markets continue to normalize following
several years of material disruption, and
we are extremely well-positioned as a
standalone company to leverage our
unique advantages to drive growth and
generate value, " Organ said.
The company said detailed information
about the transaction and the new pork
company would be included in carve-out
financial statements and pro forma
financial information offering the expected
impact of the separation. The statement
would consist of the prospectus and
management information circular.
Preliminary estimates for selected
financial information for the new pork
company come from the last 12 months
ending March 31, 2024, and include the
estimate of the transaction's effects.
IT layoffs loom
at Cargill
Cargill officials
confirmed it will be
laying off approximately
200 of the company's
technology positions
around the world.
" To deliver for our
customers and the
future of food and ag,
we are building new
digital technology and
data capabilities, " a
company spokesperson
said. " This means
eliminating some roles
across several locations
that no longer support
our technology needs or
future growth strategy.
We are committed to the
care and support of the
employees affected. "
Cargill previously
announced it would
open a new office hub
in Atlanta for its Digital
Technology and Data
(DT&D) organization,
which is separate from
the technology positions
being laid off.
For more news,
visit MEATPOULTRY.com
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MEAT+POULTRY - August 2024

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