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Industry NewsMaple Leaf Foods to spin off pork business into new public company

Maple Leaf Foods to spin off pork business into new public company

Maple Leaf Foods Inc. (CNW Group/Maple Leaf Foods Inc.)

Maple Leaf Foods is spinning off its pork business into a new public company, which will be named in the coming months.

Shareholders will receive shares in the new company and Maple Leaf will maintain a 19.9 per cent ownership position.

“This transaction is the start of a new era to unlock the full potential of two outstanding businesses, each with a distinct value proposition and growth opportunities,” says Curtis Frank, president and CEO of Maple Leaf Foods. “As separate companies, Maple Leaf Foods and the new Pork Company will each have exciting prospects, a sharpened execution focus with its own dedicated management team, and the financial independence to pursue its own value creation strategy, all with an uncompromising commitment to safety and sustainability.”

Under this agreement, the new pork company will continue to provide Maple Leaf Foods with a secure supply of high quality, sustainable pork at market prices, to meet the needs of its Prepared Foods business, providing the new pork company a strong anchor customer while allowing it to grow its already material business with customers around the world. Maple Leaf Foods says it will in turn provide the new pork business with brokerage services in North America, as well as certain other services. 

Maple Leaf Foods will continue to be led by president and CEO Curtis Frank, Adam Grogan, president and COO, and David Smales, CFO.  The new company will have an experienced management team led by Dennis Organ, incoming CEO of the new business. Organ joined Maple Leaf Foods in February 2023 as president, Pork Complex, and has more than 27 years of experience in the food industry, including 11 years with Smithfield Foods, where he held a variety of senior leadership roles, including COO and CEO.

Michael McCain, executive chair of Maple Leaf Foods says it’s the right time to make this move. “Under Curtis’ leadership, Maple Leaf Foods is on a path to deliver best-in-class consumer packaged goods performance, while the new pork company, under the leadership of Dennis, will be unleashed to leverage its unique capabilities and industry-leading performance to take advantage of new prospects for growth,” and says he has “absolute confidence” in the potential of the new business.

“Our shareholders will be able to participate in not one, but two strong, independent, sustainable and purpose-driven businesses, each with a clear mandate and investment profile, and all our stakeholders will participate in the shared value we will generate.”

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