Major meat-and-seafood supplier Sofina Foods has signed a deal to acquire Quebec-based poultry cooperative Exceldor.
The financial terms of the transaction were not disclosed.
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In a statement, Exceldor said the deal will “ensure the continuity” of its current operations, “strengthen” its nationwide footprint and “accelerate the growth” of its brands, including Exceldor, Lacroix and Granny’s. Exceldor also holds the Canadian licence to the Butterball brand.
The cooperative added the acquisition’s “operational synergies and complementary geographical markets” will enable Exceldor and Sofina to lay the “foundation for a new chapter – focused on growth, long-term value creation, and the reinforcement of Canada’s food sovereignty”.
According to Michael Latifi, founder, chairman and CEO of Sofina Foods, the deal is in line with the company’s “desire to continue investing in the Canadian poultry industry, in plants and capabilities, to better serve Canadian consumers from coast to coast”.
Exceldor, owned by approximately 330 poultry producers across Quebec, Ontario, and Manitoba, employs 3,700 people and generates an annual revenue of C$1.4bn ($1bn).
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By GlobalDataThe cooperative is also a co-owner of Unidindon in Quebec and Blumenort Hatchery in Manitoba.
Pending approval from Exceldor’s members and investment shareholders at a 5 June meeting, the transaction also requires the clearance of Canadian competition officials.
Exceldor president and CEO René Proulx said the agreement is a “unique opportunity”.
In addition to ensuring the “long-term legacy of generations of producers and employees” who built the cooperative, it “gives us the tools to strengthen our operations and create new opportunities” for them, Proulx added.
Sofina Foods, based in Markham, Ontario, is a privately held company with a diverse product portfolio.
Its Canadian brands include Cuddy, Lilydale, and Janes.
Internationally, Sofina Foods operates more than 40 locations and has more than 13,000 employees, generating over C$6.5bn in revenue.
Its European brands include Young’s Seafood, Karro, and Bloors.
