Maple Leaf Foods has reached a definitive agreement to acquire plant-based protein company Field Roast Grain Meat Co., for US$120 million, plus related costs.

The Canadian company expects to finance the transaction through a combination of cash-on-hand and drawings under the existing credit facility. Field Roast is a leading brand of premium grain-based ‘meat’ and vegan cheese products, with sales of approximately USD$38 million. Subject to customary regulatory review and transaction conditions, the transaction is expected to close by the end of 2017 and be accretive to earnings.

Once the acquisition is finalized, it will be Maple Leaf Foods’ second acquisition of a plant-based protein company. In March 2017, Maple Leaf Foods acquired Lightlife Foods, also based in the United States. That transaction was valued at US$136.7 million.

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“The acquisition of Field Roast complements and expands our portfolio in the fast-growing North American market for alternative proteins,” said Michael McCain, President and CEO of Maple Leaf Foods. “It also aligns with our vision to be a leader in sustainable protein and create shared value through making a positive social impact. Field Roast has built brand leadership through focusing on quality, craftsmanship and taste, and its acquisition will allow Maple Leaf to fuel growth in the category through investment, brand building and innovation.”

Field Roast pioneered the development of artisanal quality, grain-based meat products and is a leading brand in the premium segment. It draws on culinary heritage from Europe and Asia in its recipes, using grains, fresh vegetables, dried fruits, wine and spices. Products are marketed across North America and include fresh and frozen grain-based roasts and loaves, sausages and frankfurters, burgers, deli slices and appetizers, and Chao brand vegan cheese slices and entrees.

Field Roast was founded in 1997 and employs approximately 200 people at its 75,000 square foot leased manufacturing facilities in Seattle, Washington.