Canadian meat products company Maple Leaf has agreed to acquire VIAU Foods – a leading Canadian producer of cooked Italian, dry-cured, and charcuterie meats – for C$215 million (US$167 million).
Headquartered in Mississauga, Ontario, Maple Leaf is a focused consumer packaged meats company that is organized into two groups – its Meat Products Group and Agribusiness Group, through which it raises and processes hogs, and sells its range of meat products primarily on the Canadian, U.S., Mexican, and Japanese markets.
Established in 1977, VIAU’s product lines include value-added cooked meats, sausages, shaved steak, meatballs, gourmet deli meats, along with salametti, capicola, pancetta, and sliced chorizo. The company also is a supplier of pizza toppings, and provides dried pepperoni and other toppings to the foodservice industry across North America.
“VIAU brings a portfolio of leading brands, a reputation for innovation and quality, skilled management and people, and excellent manufacturing assets,” said Michael McCain, president and CEO of Maple Leaf Foods. “This acquisition expands Maple Leaf’s position in the growing market for premium dry cured and pepperoni meat products and provides further production capacity in Quebec, an important strategic base to grow both Canadian and U.S. sales.”
Diverse Deals
Through its recent acquisitions, Maple Leaf has demonstrated that it is pursuing a foothold in both the meat protein and plant-based protein categories. In February of last year, the company announced that it had acquired U.S.-based, plant-based protein food manufacturer, LightLife Foods Inc. from Brynwood Partners VI LP for $140 million plus associated costs.
In 2016 Lightlife controlled a 38 percent market share of the U.S. refrigerated plant proteins market, and posted sales of approximately $40 million. Founded more than 30 years ago in Turners Falls, Massachusetts, Lightlife produces a range of more than 30 products including vegetarian and vegan burgers, hotdogs, beef, chicken, deli meats, tempeh, and breakfast foods.
“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,” said McCain. “We will expand our presence through investment in brand building, innovation and leveraging our respective capabilities.”
The Meat of the Matter
VIAU brings 470 employees to Maple Leaf and two facilities located in Laval and Montreal, Canada, that have secured Hazard Analysis Critical Control Point (HACCP), and United States Department of Agriculture (USDA) and Safe Quality Food (SQF) accreditation.
However, the tie-in with Maple Leaf will enable the company to accelerate its growth while also expanding its market reach into the U.S.
“It is with great pride that we join the Maple Leaf family,” said Pat De Marco, president and COO of VIAU. “Our quality and food safety culture fits perfectly with Maple Leaf, the company that, for years, we have regarded as the Canadian industry leader. The resources that Maple Leaf brings will allow us to more quickly grow our business, provide additional product offerings to our customers, make further inroads into the U.S. market, and provide more opportunities to our people. We are truly excited about the future possibilities.”
-Lynda Kiernan