Nutreco acquires Maple Leaf Animal Feed
Canada headquartered food processing company Maple
Leaf Foods, has sold its animal nutrition business to Nutreco Holding NV for
C$500 million (€3330m) plus normal closing adjustments. The transaction is
expected to close in July 2007.
Maple Leaf Animal Nutrition through its well-known Shur-Gain brand in
eastern Canada and Landmark brand in western Canada - is the leader in animal
nutrition technology and offers a wide range of products such as complete feeds,
premixes, feed speciality products, feed additives and pet food.
The business has strong, long-term customer relationships, an ambitious
and experienced management team and a sound financial track record. The revenues
are approximately C$650 million (€430m) and 2006 earnings before interest and
taxes of about C$47 million (€31m).
Michael McCain, President and CEO of Maple Leaf Foods said the sale
would permit the company to focus on its core value added bakery, meats and
meals businesses; significantly de-leverage its balance sheet and provide the
company flexibility to re-invest in value added businesses.
presence in North America.
For Nutreco this major acquisition fits in its core business growth
objectives. The animal nutrition business in North America is the largest in the
world and it has been a long standing ambition of Nutreco to increase its
presence in this important area.
The business is Canada's leading animal nutrition supplier with an
overall share of above 20%. Total production in 2006 was 1.7 million tonnes of
feed (5.9 million tonnes on a compound feed equivalent basis).
It owns and operates 18 dedicated feed manufacturing facilities. The
company has approximately 1,200 employees in eight Canadian provinces and New
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