Maple Leaf Foods to acquire two poultry assets from Cericola Farms

Canadian packaged meats company Maple Leaf Foods has signed a definitive agreement to purchase two poultry plants from Cericola Farms for an undisclosed amount.

The two facilities are located in Bradford, Ontario and Drummondville, Quebec, respectively.

The sites possess a combined processing capacity of approximately 32 million kilograms of chicken per year.

Cericola Farms founder Mary Cericola said: “Our vision over the past 60 years has been to provide wholesome and natural poultry products to our customers.

“It is this tradition of excellence that aligns Maple Leaf and Cericola.”

In addition, Maple Leaf has entered an agreement to secure 100% of the processed chicken from Cericola’s primary processing plant in Schomberg, Ontario.

The deal grants Maple Leaf the option of acquiring this asset and the associated plant supply within a time period of three years.

Cericola specialises in the air-chilled processing of antibiotic and animal by-product free (AABF) and organic poultry products.

Maple Leaf Foods president and CEO Michael McCain said: “Cericola is a leader in raised without antibiotics and organic chicken.

“This acquisition will build Maple Leaf’s market leadership in these value-added categories and enable us to meet growing consumer demand.”

The deal is set to be financed through a combination of cash-on-hand and drawings under a credit facility.

Maple Leaf intends to leverage the latest acquisition to increase its value-added processing capability in order to advance its position in higher-value categories.

The deal is subject to normal closing requirements, including Competition Bureau review, and is expected to close by August.

Maple Leaf Foods is a consumer protein company headquartered in Mississauga, Ontario.

The firm provides products under numerous brands such as Maple Leaf, Maple Leaf Prime, Maple Leaf Natural Selections, Schneiders, Mina, Lightlife and the Field Roast Grain Meat Co.

It employs nearly 11,500 people and conducts operations in Canada, Asia and the US.