Maple
Leaf Foods has a deal to buy Lightlife Foods Inc. of Massachusetts for $140
million.
The
company holds 38 per cent market share in the United States for refrigerated
vegetable protein products.
“The
transaction will be financed from cash on hand,” says Maple Leaf. “The deal
will close in March, subject to customary U.S. regulatory review.”
Maple
Leaf president and CEO Michael McCain said that "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.”
"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 $40 million US.
The
company employs approximately 100 people at its facility in Turners Falls,
Massachusetts, where it manufactures more than 30 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.