Maple Leaf sells rendering and biodiesel business
By Maple Leaf FoodsFeatures Profiles Researchers Business/Policy Canada United States
Aug. 23, 2013, Toronto, ON – Maple Leaf Foods has announced that it has entered into a definitive agreement to sell Rothsay, its rendering and biodiesel business, to Darling International Inc. of Irving, Texas by the end of 2013.
“The sale of our rendering and biodiesel business supports our strategy to focus on effective capital deployment and profitable growth in the consumer packaged foods market,” said Michael McCain, President and CEO. “We are delighted to have concluded almost a year-long process with an agreement with Darling, the North American leader in food waste recycling. The sale will support future investments in our consumer facing businesses and allow Darling to build on Rothsay’s strong capabilities and deep customer relationships.”
The transaction is expected to bring in approximately $645 million, which will initially be used to pay down debt.
Rothsay is the leading rendering company in Canada and a leading producer of biodiesel. The business operates six rendering plants located in Manitoba, Ontario, Quebec and Nova Scotia and a biodiesel facility in Quebec. It employs approximately 550 people, who will transition to Darling once the transaction closes. Maple Leaf plans to enter into a long term contract with Darling to receive by-products recycling services at competitive market rates.
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