Maple Leaf Foods concludes Drummondville poultry plant divestiture

Canada-based food company Maple Leaf Foods has completed the sale of its poultry plant in Drummondville and associated supply to Giannone Poultry in Quebec.

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

The divesture of the Drummondville plant is said to be part of Maple Leaf Foods’ overall network optimisation strategy. The firm previously acquired the assets in 2018 from Cericola Farms.

Maple Leaf Foods, however, will continue to operate the Cericola Farms poultry facility in Bradford, Ontario.

According to the agreement, Giannone has agreed to supply fresh chicken to Maple Leaf Foods for three years.

The deal to sell the Drummondville plant and associated supply to Giannone Poultry in Quebec was first announced by Maple Leaf in mid-July.

Announcing the deal, 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 November 2018, Maple Leaf Foods announced its plans to build a poultry facility in London, Ontario, with an investment of C$660m ($497m).

Maple Leaf’s 640,000ft² facility will be equipped with advanced technology and processes to ensure food safety, environmental sustainability and animal welfare.