Canadian meat supplier Maple Leaf Foods has agreed to sell its poultry processing plant in Drummondville, Quebec, to local producer Volaille Giannone.
Operated by Maple Leaf since 2018, the facility currently has around 100 employees.
Maple Leaf will continue to run a poultry plant in Bradford, Ontario, that was purchased as part of the same 2018 acquisition deal, involving select Cericola Farms assets.
Based in St. Cuthbert, Quebec, Volaille Giannone is a family-run poultry business which serves Canadian markets and the northeastern US. The transaction will reportedly enable the company, which already owns a plant in St-Cuthbert (Lanaudière), to increase its production volume by 40%.
The deal also includes a three-year agreement that will allow Maple Leaf to maintain its supply of fresh chicken.
Volaille Giannone says that it commits to honouring existing supply agreements with poultry producers.
“Core to Maple Leaf’s strategy is sustainable and value-added meat protein products,” said Michael McCain, Maple Leaf president and CEO.
“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.”
Bruno Giannone, VP and CEO of Volaille Giannone, said: “The agreement is in line with our growth objective and will help slightly increase our production volume. This transaction will also strengthen our marketing capacities to better meet our customers’ needs.”
The transaction is expected to close this summer, subject to certain closing conditions and customary regulatory processes.
© FoodBev Media Ltd 2020