Canadian co-operative Exceldor to acquire P&H Foods

Canadian poultry co-operative Exceldor has signed an agreement to acquire the P&H Foods division of Parrish & Heimbecker for an undisclosed amount.

As part of the deal, Exceldor will acquire the primary turkey processing plant located in Hanover, Ontario.

It will also acquire a joint venture interest in Golden Valley Farms, consisting of a processing plant in Arthur, Ontario.

Currently, P&H Foods produces and sells products under the Butterball brand in Canada under a licensing agreement with Butterball, which is based in Garner, North Carolina.

The transaction is expected to be completed in the third quarter of 2014.

Exceldor president and CEO René Proulx said the acquisition of P&H Foods gives the firm the opportunity to expand its operations outside the Province of Quebec, and also to integrate Butterball into its portfolio of existing brands in Canada.

"We are excited about the growth opportunities we foresee with the Butterball brand, positioning Exceldor to be the market leader in the turkey processing industry in Canada," Proulx added.

P&H Foods president Paul Borg said, "We are pleased to be joining Exceldor, an industry leading organisation that has a well-respected reputation in the Canadian poultry industry for management excellence and product innovation.

"Our 400 employees look forward to becoming members of the Exceldor team."

Following the acquisition, Exceldor will have revenues in excess of C$625m ($571m) and its products will be sold across Canada.

Exceldor processes around 1.4 million chickens and turkeys every week for the retail, food service and secondary processing markets.

The company employs more than 1400 people and generates revenues of C$500m ($457m).

Parrish & Heimbecker, based in Manitoba, Canada, and founded in 1909, is involved in various aspects of agri-business, comprising grain procurement and merchandising, milling, animal nutrition programmes, poultry farming and food processing.