Expanding its strategic operation in Western Canada and heading off growing demand, Olymel L.P. announced the acquisition of Pinnacle Farms Inc., a major hog producer located east of Calgary, near Strathmore, Alberta.
"Olymel is pleased to welcome the employees of Pinnacle Farms into its family. Their experience will be invaluable to Olymel, which receives a boost to its hog production operations in Western Canada,” said Olymel L.P. President and CEO Réjean Nadeau, in a company press release. “I would like to thank Ron Arnason, President of Pinnacle Farms, and Verus Management, Pinnacle's partner with which we have had business relationships for many years and which established the climate of trust that led to this transaction. This addition in our pork sector should support the target Olymel has set for 2020: to produce more than 1.5 million hogs annually in Western Canada in order to meet the growing demand from its customers."
Pinnacle Farms’ 30 employees will join Olymel. Additionally, the company acquired a quarantine barn, sow barns, nursery barns, and finishing barns. Olymel will lease another finishing farm near Medicine Hat, Alberta.
The acquisition brings the number of sows Olymel has available in Western Canada to 52,000, and makes it possible for the company to deliver 100,000 more hogs annually to its processing plant in Red Deer. The plant already employs more than 1,540, and additional pigs being turned to market may require 30,000 contract finishing spaces in Alberta.
"Pinnacle has been supplying finishing hogs to Olymel for more than 4 years, so our two companies have had time to get to know one another,” said Arnason. “Verus Management and I are pleased with the conclusion of this relationship and the transaction we are announcing today. We are confident that Pinnacle Farms employees will find a dynamic environment at Olymel where they can maximize their work. This transaction opens the door to the company's further development, and will enable it to serve new markets."
What’s next for the ever-expanding provider of poultry and pork? Check back in with Deli Market News to find out.