Maple Leaf Foods has completed the sale of its poultry plant in Drummondville, Quebec, as well as its associated supply, to Giannone Poultry of St. Cuthbert, Quebec, the company revealed on July 28.
Maple Leaf Foods announced on July 16 its intent to sell the assets to Giannone Poultry. Financial terms of the transaction, which Maple Leaf Foods described as being part of its overall network optimization strategy, were not disclosed.
As part of the sale, Maple Leaf Foods and Giannone Poultry reached a three-year supply agreement that will allow Maple Leaf Foods to maintain its supply of fresh chicken.
Maple Leaf Foods acquired the plant and supply in 2018 with the purchase of select Cericola Farms assets. Maple Leaf Foods will continue to own and operate the Bradford, Ontario poultry plant that was also acquired in connection with the 2018 Cericola purchase.
"Core to Maple Leaf's strategy is sustainable and value-added meat protein products," Michael McCain, Maple Leaf Foods’ president and CEO, said in announcing the then-proposed sale. "Over the past few years, our leadership position in this category has grown; however, we are focused on prioritizing capital and optimizing our processing network.
This transaction will allow Giannone Poultry, which already owns a major plant in St-Cuthbert (Lanaudière), to increase its production volume by 40%.
“The agreement is in line with our growth objective and will help slightly increasing our production volume. This transaction will also strengthen our marketing capacities to better meet our customers' needs," said Bruno Giannone, vice-president and CEO of Giannone Poultry.
Founded in 1989, Giannone Poultry, also known as Volaille Giannone, is a family business specializing in poultry slaughtering and cutting. It is known for its production methods based on animal welfare, product quality, food safety, and respect for the environment. Giannone Poultry serves both the Quebec and Canadian markets as well as north-eastern United States. The company offers premium-quality products, from fresh and seasoned chicken to vacuum-sealed products.
