Maple Leaf Foods, a prominent Canadian food company, has announced its plan to spin off its pork division, leading to the creation of two distinct public companies. This strategic move aims to sharpen the focus of each entity, enabling them to execute their growth strategies and uphold their commitment to best-in-class sustainability practices.
“This transaction marks the beginning of a new chapter to unleash the full potential of two exceptional businesses, each offering unique value propositions and growth opportunities,” stated Curtis Frank, the president and CEO of Maple Leaf Foods, in a press release.
As part of this transition, Dennis Organ, who joined Maple Leaf Foods in February 2023 as the president of the pork complex, will assume the role of CEO of the new company. With over 27 years of experience in the food industry, including senior leadership positions at Smithfield Foods, Organ is poised to lead the new entity towards success.
The new company’s name will be revealed in the coming months, while Maple Leaf Foods will retain a 19.9% ownership stake in the pork entity. Both companies will enter into an evergreen pork supply agreement, ensuring a stable partnership with mutual benefits.
The separation has been approved by Maple Leaf’s board of directors and is scheduled for completion in 2025. This development comes at a time when global pork production is stabilizing, with positive indicators such as improved consumer demand and reduced production costs contributing to a promising outlook for the industry.