Maple Leaf Foods to Spin Off Pork Company, Focus on Packaged Goods

Maple Leaf Foods is separating into two independent public companies, spinning off its pork business and focusing on consumer packaged goods.

By spinning off its pork business (the name will be announced in the coming months), Maple Leaf Foods will unlock significant growth potential with a world-leading organization that produces sustainable meat and can take advantage of its own unique business model to unlock its own significant growth potential.

Maple Leaf Foods will retain a 19.9% ownership position in the new pork company, and the two companies will enter into an evergreen pork supply agreement that will deliver value for both businesses, while also allowing them to pursue their individual value creation opportunities. Under this agreement, the new pork company will continue to provide Maple Leaf Foods with a secure supply of high-quality, sustainable pork at market prices, to meet the needs of its Prepared Foods business, providing the new company a strong anchor customer while allowing it to grow. Maple Leaf Foods will in turn provide the new pork company with brokerage services in North America, as well as certain other services.

"This transaction is the start of a new era to unlock the full potential of two outstanding businesses, each with a distinct value proposition and growth opportunities," said Curtis Frank, president and CEO of Maple Leaf Foods. "As separate companies, Maple Leaf Foods and the new Pork Company will each have exciting prospects, a sharpened execution focus with its own dedicated management team, and the financial independence to pursue its own value creation strategy, all with an uncompromising commitment to safety and sustainability."

Maple Leaf Foods will continue to be led by Curtis Frank, president and CEO; Adam Grogan, president and COO; and David Smales, CFO.  The new pork company will go forward with a strong and experienced management team led by Dennis Organ, incoming CEO of the new pork company. Organ has been with Maple Leaf Foods since February 2023 as president, Pork Complex, and has more than 27 years of experience in the food industry, including 11 years with Smithfield Foods, where he held a variety of senior leadership roles, including CEO and COO.

"This is the right transaction at the right time as we move forward with our sustainability vision, seeking to create value for all stakeholders," said Michael H. McCain, Executive Chair of Maple Leaf Foods. "Under Curtis' leadership, Maple Leaf Foods is on a path to deliver best-in-class consumer packaged goods performance, while the new pork company, under the leadership of Dennis, will be unleashed to leverage its unique capabilities and industry-leading performance to take advantage of new prospects for growth."

The separation will create:

The separation is expected to be completed in 2025.