(Reuters) —Maple Leaf Foods Inc. plans to sell its Ontario turkey farms and hatchery.
The company, which is one of Canada’s largest poultry and hog processors, said today it will sell a hatchery and six breeder farms that produce eggs and day-old turkeys to Cuddy Farms Ltd. Six commercial farms will be sold to Ernald Enterprises Ltd., which already supplies turkey to Maple Leaf.
Maple Leaf said Ernald agreed to continue supplying Maple Leaf with live turkeys for its processing facility in Thamesford, Ont. Other terms of the deals, which are expected to close by the end of July, were not released.
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Maple Leaf has for several years closed older pork-processing plants and invested in others as it tries to boost its profits and better compete with U.S. rivals.
The company’s shares rose 1.8 percent, or 27 Canadian cents, to $15.72 in early trading in Toronto today, touching a nearly six-year high and continuing a steady climb since reports in June that it had been approached about a potential takeover by U.S. rival Smithfield Foods.
Instead, China’s Shuanghui International Holdings agreed to buy Smithfield for $4.7 billion. However, Maple Leaf stock remains well-supported on thoughts that others may be interested.
