TORONTO
After embarking on a strategy to increase scale, productivity, and profitability in its protein operations, Maple Leaf Foods is now in the final phase of executing this strategy, which is expected to deliver significant returns to shareholders upon its completion by 2015.
The company has conducted a comprehensive review of opportunities to accelerate profitable growth across its global Bakery business, which it conducts through its 90% owned subsidiary, Canada Bread. Maple Leaf’s Board and management are now considering other strategic alternatives, including a sale of the company’s 90% interest in Canada Bread, a process that is expected to conclude in early 2014, according to a press release. The company believes that significant growth opportunities in the baked goods sector can be pursued, either as part of Maple Leaf or under new ownership.
“We are confident that our Bakery business can deliver significantly higher levels of profitable growth; the only question is how best to realize the future value of this business,” said Michael H. McCain, President and CEO. “The recently completed Bakery strategy will require organizational focus and resources to implement. This process gives us the opportunity to determine the best path forward for Maple Leaf, our shareholders and our Bakery business.”
David L. Emerson, Chair of the Maple Leaf Board, said, “The Board and management are united in supporting this process, which will ensure we make the best decision for Maple Leaf while continuing to pursue the significant growth opportunities in our value-added, branded meat business.”
Maple Leaf has established a committee of independent directors to oversee the process and recommend the use of proceeds in the event of a sale, which may include a combination of debt repayment, reinvestment in the business, and returning capital to shareholders.
What will this strategic move do to Maple Leaf’s bakery business?
Stay tuned to DeliMarket TV as we continue our coverage on Maple Leaf’s potential sale of Canada Bread Company, Ltd.
