Establishes Maple Leaf as a Leader in the
U.S. Plant-Based Proteins Market
MISSISSAUGA, ON, Feb. 21, 2017 /PRNewswire/ - Maple Leaf
Foods (MFI: TSX) today announced that it has signed a definitive
agreement with Brynwood Partners VI L.P. to acquire Lightlife
Foods, Inc., a leading manufacturer and brand of refrigerated
plant-based protein foods in the United
States, for US$140 million,
and related costs. The transaction will be financed from cash on
hand. Based on current operating results, the acquisition is
expected to be accretive to Maple Leaf's earnings in 2017. The deal
will close in March, subject to customary U.S. regulatory
review.
"Expanding into the fast growing plant-based proteins market is
one of Maple Leaf's strategic growth platforms and supports our
commitment to become a leader in sustainability," said Michael McCain, President and CEO. "Consumers
are increasingly looking to diversify their protein consumption,
including plant-based options. The acquisition of Lightlife
provides Maple Leaf with a leading market position and brand in
the United States in a category
that is outpacing growth in the broader packaged foods sector. We
will expand our presence through investment in brand building,
innovation and leveraging our respective capabilities."
Lightlife reported 2016 sales of approximately US$40 million and has 38% market share in the
U.S. refrigerated plant proteins market. The company employs
approximately 100 people at its facility in Turners Falls, Massachusetts, where it
manufactures more than 30 innovative products, including
plant-based tempeh, hot dogs, breakfast foods and burgers.
Lightlife management will continue to lead the business, which will
operate as a subsidiary of Maple Leaf.
"We at Lightlife are truly excited about today's announcement
which will allow us to accelerate our growth and broaden our reach
in the fast growing plant-based protein market. Maple Leaf Foods
has an industry leading commitment to sustainable protein,
including a strategic focus on plant proteins, and being part of
this incredible organization will enable the continued growth of
our brands," said Roy Lubetkin,
President and CEO, Lightlife Foods.
Maple Leaf is committed to leadership in sustainability and
creating business value through addressing environmental and social
issues including environmental sustainability, animal welfare, food
security, and nutrition and health. The expansion into plant-based
proteins supports this commitment and provides exciting growth
opportunities for the Company beyond its platform in advancing
sustainable meat.
The U.S. market for plant-based proteins is estimated at
US$600 million, with the refrigerated
category representing over US$110
million and delivering double-digit annual growth.
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Maple Leaf Foods Inc. is a leading consumer protein company,
making high quality, innovative products under national brands
including Maple Leaf®, Maple Leaf Prime®, Maple Leaf Natural
Selections®, Schneiders®, Schneiders® Country Naturals®, Mina®, and
Devour™. The Company employs approximately 11,000 people across
Canada and exports to global
markets, including the U.S. and Asia. The Company is headquartered in
Mississauga, Ontario and its
shares trade on the Toronto Stock Exchange (MFI).
SOURCE Maple Leaf Foods Inc.