Canadian businesses Olymel, Atrahan forming pork partnership
Business agreement is expected to be finalized in May
The executives of Canadian companies Olymel and Atrahan Transformation have signed an agreement to establish a business partnership for the joint operation of hog slaughtering, butchering and pork processing activities.
Financial information involved in the partnership transaction will not be disclosed, the companies jointly stated in a press release. The partnership agreement is expected to be completed in May, after due diligence and necessary approvals are given.
Once this partnership is concluded, Olymel and Atrahan Transformation will have access to additional supply volumes that will enable them to better meet the demands of the Québec, Canadian and foreign markets. The conclusion of this partnership is expected to result in profitable synergies for both companies.
"In a true spirit of partnership, our two companies have decided to initiate discussions in order to join forces and take advantage of all the synergies that will result from pooling our operations in the pork sector. For nearly 60 years the succession of Trahan family members who have run the company have been visionary entrepreneurs, careful to provide proper management for their business. We at Olymel are proud to be able to embark on building a partnership that will strengthen our leadership position in the Canadian agri-food industry and also enable the owners and employees of Atrahan Transformation Inc. to enjoy the benefits of this alliance," said Olymel President and CEO Réjean Nadeau
The 350 employees of Atrahan Transformation will continue operations at the Yamachiche, Quebec, plant. The plant will continue to serve its current customers and respect supply agreements with its suppliers under the Hog Marketing Agreement.
"It is with great confidence that we look forward to partnering with Olymel, a pillar of the Quebec agri-food industry, a strong, diversified company with which we share values such as respect for the individual, achieving the highest standards of quality and excellence in customer service. I am confident that, thanks to this partnership, the company in which the Trahan family has invested energy and passion for nearly 60 years will continue to grow. I also believe that our employees, suppliers and customers will be the first to benefit from the positive effects of this business partnership," added Atrahan Transformation President Denis Trahan.