Canadian chicken and turkey processor Exceldor has signed a definitive agreement to acquire P&H Foods. Included in the transaction are P&H Foods’ primary turkey processing plant located in Hanover, Ontario, and a joint venture interest in Golden Valley Farms consisting of a further processing plant located in Arthur, Ontario. P&H Foods produces and sells products under the Butterball brand in Canada under a licensing agreement with Butterball LLC.
The transaction is expected to close in the third quarter of the 2014 calendar year, shortly after required regulatory approvals are received. The terms of the transaction were not disclosed.
"The acquisition of P&H Foods gives us the opportunity not only to expand our operations outside the Province ofQuebec, but also integrate Butterball to our portfolio of existing brands in Canada," said René Proulx, Exceldor's president and CEO. As a result of this acquisition, Exceldor will have revenues in excess of CA$625 million (US$572.2 million) and its products will be sold across Canada.
"We are excited about the growth opportunities we foresee with the Butterball brand, positioning Exceldor to be the market leader in the turkey processing industry in Canada. We welcome the dedicated employees of P&H Foods, who have significantly contributed to its success and it is our intention to operate and enhance the P&H Foods facilities," added Proulx.
"We are pleased to be joining Exceldor, an industry leading organization that has a well-respected reputation in the Canadian poultry industry for management excellence and product innovation. Our 400 employees look forward to becoming members of the Exceldor team," said Paul Borg, president of P&H Foods.