I thought turkeys could fly
Cuddy Farms and Ernald Enterprises gobble up Maple Leaf Foods turkey business in separate deals.
Toronto-based Maple Leaf Foods is selling its Ontario-based commercial turkey farms and its breeder farms and hatchery operation in two separate deals expected to close by the end of July 2013 to Ernald Enterprises Ltd. and Cuddy Farms Ltd.
“Divesting our turkey growing operations will allow us to focus on, and direct capital to, growth and innovation in our valued-added turkey processing business,” says Maple Leaf Foods president and chief executive officer Michael McCain. “The transaction ensures a long-term supply of high-quality turkeys at competitive prices. I’d like to thank our people who work in these operations for their dedication to our business. They are joining two organizations who are leaders in Canada’s turkey growing industry.”
Ernald Enterprises will acquire the commercial farms in southern Ontario and continue to provide a long-term supply of live birds to Maple Leaf.
Along with 1200 acres of land it owns and rents out to local farmers for cash crops, Ernald Enterprises owns and operates several commercial poultry barns: three in New Dundee, Ont.; six in Ailsa Craig, Ont.; and 12 in Komoka, Ont. with some 470,000 chickens and 340,000 turkeys. It produces 2.3 million pounds of chicken and 8.8 million pounds of turkey annually.
Cuddy Farms is buying a hatchery and six breeder farms that supply turkey eggs and day-old turkeys to domestic and international markets.
Founded in 1950 and based in Strathroy, Ont. with sales and production centers around the globe, Cuddy Farms is a global leader in the production and delivery of commercial turkey eggs and poultry. It exports its products to Germany, Mexico, Italy, Turkey (of course), Poland, Austria, Holland, Hungry and the Baltic States.
Many of the more than 100 employees at the Maple Leaf Foods facilities will transition to Ernald Enterprises and Cuddy Farms once the deals close.
Maple Leaf officials say the sale will allow the company to focus on its value-added turkey processing business while continuing to receive a long-term supply of high-quality turkeys at competitive prices. Other terms of the transactions were not disclosed.