Maple Leaf Foods Inc. says it plans to spin off its pork business into a new publicly traded company.
With the deal, Maple Leaf said it will be a more focused brand-led consumer packaged goods company.
“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,” Maple Leaf chief executive Curtis Frank said in a statement.
Under the plan, existing Maple Leaf shareholders will receive shares in the new company, while Maple Leaf will keep a 19.9 per cent ownership position.
The two companies will also enter into an evergreen pork supply agreement.
Maple Leaf said the new pork company will continue to provide Maple Leaf Foods with a secure supply of pork at market prices for its prepared foods business.
Maple Leaf …