The business partnership between Canadian companies Olymel and Atrahan Transformation has received the green light from the Competition Bureau of Canada. The companies initially announced their intent to form a partnership in February 2015.
With this decision from Canadian authorities, the management of Olymel and Atrahan Transformation have announced their intention to merge their hog slaughtering, butchering and processing operations and finalize the transaction in the coming weeks.
The value of the transaction will not be disclosed.
"Olymel will do everything possible to ensure that the sum of the expertise and know-how possessed by our two companies will enable us to benefit from the synergies generated by this transaction. We welcome the managers and all 350 employees of Atrahan Transformation Inc. into this new partnership, and assure them of our desire to preserve the values that are at the core of this fine family business. Together, we will nurture a partnership that will be able to capture new markets and better satisfy our customers' demands," said Olymel President and CEO Rejean Nadeau.
Atrahan Transformation Inc. was founded 60 years ago. The company has more than 350 employees and generates annual sales of approximately $200 million, exporting its products to over 50 countries, including Japan, China and the United States. Its annual slaughtering capacity now stands at nearly one million hogs. The plant in Yamachiche will remain in operation, and will continue to serve its customers and honor its supply agreements under the terms of the Hog Marketing Agreement.
"After a year of interchanges between Olymel and Atrahan Transformation Inc., we can finally give life to this partnership between two companies with deep roots in Quebec and a presence in many markets worldwide, both of which are heavily involved in developing Quebec pork products. After 60 years of operations this year, the Trahan family sees this alliance as an assurance that it will be able to take the company it has developed over the past six decades to a new level. We wish to reiterate the confidence we expressed when the partnership was first announced in February last year. I am convinced that pooling our operations will benefit our employees, our suppliers and our customers no matter where they may be," added Denis Trahan, president of Atrahan Transformation Inc.