Maple Leaf Foods is buying a U.S.-based manufacturer of plant-based protein foods for US$140 million and related costs.
Maple Leaf is buying Lightlife Foods, which makes 30 innovative products, including plant-based tempeh, hot dogs, breakfast foods and burgers, from Brynwood Partners VI L.P.
The deal, financed from cash on hand, is expected to 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 chief executive in a news release.
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“Consumers are increasingly looking to diversify their protein consumption, including plant-based options.”
Lightlife employs about 100 people at its facility in Turners Falls, Massachusetts. Lightlife management will continue to lead the business, which will operate as a subsidiary of Maple Leaf.
Maple Leaf said in a release that plant based protein foods category is growing faster than the overall packaged foods sector.
The U.S. market for plant-based proteins is estimated at US$600 million, with the refrigerated category representing over $110 million and delivering double-digit annual growth.
Lightlife reported 2016 sales of about $40 million and has 38 percent market share in the U.S. refrigerated plant proteins market.
