Maple Leaf Foods Inc. announced that it has entered into a definitive agreement to sell its potato processing facility in Lethbridge, Alberta to Cavendish Farms, an affiliate of J.D. Irving Ltd.
The Lethbridge facility employs approximately 135 people and makes a variety of frozen French fries, hash browns and specialty potato products. The business has annual sales of approximately $75 million and markets its products to domestic and international customers. Maple Leaf will realize proceeds of approximately $60 million from the sale, which includes inventory and working capital, which will be used to pay down debt. The transaction is expected to close by the end of December, 2012.
"This business will be in good hands in a company that is focused on growth in the value added potato business," said Michael McCain, President and CEO. "The quality of our products and strength of our people, customer and producer relationships were pivotal to completing this agreement."
Cavendish Farms is a producer of frozen potato and appetizer products and a leader in the food industry.
Source: Maple Leaf Foods Inc.