On July 9, 2024, Maple Leaf Foods Inc. (TSX: MFI) unveiled a plan to split into two independent public companies, enhancing growth prospects and market leadership. The separation, valued at CAD 1.65 billion, will create a brand-focused consumer packaged goods company under Maple Leaf Foods and a new Pork Company dedicated to sustainable meat production.

The Board of Directors and McCain Capital Inc., Maple Leaf's controlling shareholder, approved the transaction, which is set for completion in 2025. The new Pork Company will retain a 19.9% ownership stake, with an evergreen pork supply agreement ensuring mutual benefits.

Curtis Frank, CEO of Maple Leaf Foods, will continue leading the brand-focused company. Dennis Organ, with extensive industry experience, will helm the new Pork Company.

Financial and legal advisors for the deal include BMO Capital Markets, Centerview Partners, Blake, Cassels & Graydon LLP, and Torys LLP. Goodmans LLP acted for McCain Capital Inc. and the McCain family. RBC Capital Markets provided a fairness opinion on the transaction.

This strategic move aims to enhance each company's growth potential, sharpen focus, and uphold sustainability commitments, offering investors distinct opportunities in two leading businesses.