Olymel acquires Canadian assets of hog producer Big Sky Farms

Olymel, a food processing company in Canada, has acquired the Canadian assets of bankrupt hog producer Big Sky Farms and its related entities, for C$65.25m ($65.8m).

Olymel noted that the acquisition is a strategic response to the challenge of hog supplies in the western part of the country.

The transaction includes the acquisition of all of Big Sky Farms’ Canadian facilities, mainly assets located in Saskatchewan, the breeding herd and boar studs, the genetic nucleus, maternities and finishing sites, in addition to feed mills and transport activities.

Olymel president and CEO Réjean Nadeau said that the new deal is in line with the company’s policy of strengthening the capacity of its processing and value-added product manufacturing plants, for both the domestic market and export outlets.

"Although this is its first foray into the swine production industry, Olymel plans to draw on the expertise of its owners who are already involved in the production sector to take advantage of all possible synergies in order to integrate Big Sky Farms into its operations," Nadeau added.

Established in 1995 in Saskatchewan, Canada, Big Sky Farms has an annual production of one million hogs, and a workforce of more than 400.

In 2012, the company filed for bankruptcy over high feed costs.

Big Sky Farms has been one of the major suppliers to the Olymel hog slaughterhouse and butchering plant in Red Deer, Alberta, for many years.

Olymel said Big Sky Farms will maintain its business relations with customers and suppliers, in addition to supplying hogs to its Red Deer plant.

Olymel is involved in the slaughtering, processing and distribution of pork and poultry, and has facilities in Quebec, Ontario, Alberta, Saskatchewan and New Brunswick.