Maple Leaf to acquire VIAU Foods for $167m

Canadian packaged meat company Maple Leaf Foods has signed a definitive agreement to acquire VIAU Foods for C$215m ($167m), including C$30m ($23.3m) in Maple Leaf stock.

Established in 1977, VIAU produces a wide range of prepared meat products, which include Italian cooked meats, sausages, pizza toppings, shaved steak and meatballs.

Additionally, the company produces gourmet deli and charcuterie products such as salametti, capicollo, pancetta, and sliced chorizo.

It is also engaged in the supply of dried pepperoni and other pizza toppings to the North American food service industry.

VIAU president and COO Pat De Marco said: “It is with great pride that we join the Maple Leaf family. Our quality and food safety culture fit perfectly with Maple Leaf, the company that, for years, we have regarded as the Canadian industry leader.

“The resources that Maple Leaf brings will allow us to more quickly grow our business, provide additional product offerings to our customers, make further inroads into the US market, and provide more opportunities to our people.”

With this acquisition, Maple Leaf intends to strengthen its leadership in premium Italian, cooked and dry cured meats.

Maple Leaf plans to finance the transaction through a combination of cash and drawings under its existing credit facility.

The deal is subject to regulatory review and is expected to close in December this year.

Maple Leaf Foods president and CEO Michael McCain said: “This acquisition expands Maple Leaf’s position in the growing market for premium dry cured and pepperoni meat products and provides further production capacity in Quebec, an important strategic base to grow both Canadian and US sales.

“It also enables VIAU to expand its portfolio to include raised without antibiotic products, leveraging Maple Leaf’s leadership in this growing market.”