Monday, October 21, 2013

Canada Bread may be sold


Maple Leaf Foods Inc. says it might sell its 90 per cent stake in Canada Bread.

The company says it’s undertaking a strategic review that includes the option of selling.

Maple Leaf has just finished building a huge new plant for Canada Bread at Hamilton. It consolidated operations from several smaller bakeries in the new facility.

"We are confident that our Bakery business can deliver significantly higher levels of profitable growth; the only question is how best to realize the future value of this business," said Michael H. McCain, president and CEO.
"The recently completed Bakery strategy will require organizational focus and resources to implement. This process gives us the opportunity to determine the best path forward for Maple Leaf, our shareholders and our Bakery business," he said.
David L. Emerson, chair of the Maple Leaf Board, said, "the Board and management are united in supporting this process, which will ensure we make the best decision for Maple Leaf while continuing to pursue the significant growth opportunities in our value- added, branded meat business."

Maple Leaf is nearing completion of another huge new plant in Hamilton, this one to consolidate its meat-processing operations. That plan includes closing the large and old Schneider Corp. plant in Kitchener.