Thailand's biggest agriculture conglomerate Charoen Pokphand Foods Pcl (CPF) has stated that it will acquire Manitoba-based pork producer HyLife for $498 million dollars.

HyLife has processing plants in Canada and Mexico and is involved in feed manufacturing, hog production and distribution of pork products.

The deal would give CPF a 50.1 per cent stake in the company, with the remainder held by Japanese partner Itochu Corp.

“This is a win-win for HyLife, CPF and Manitoba’s agricultural industry," said Grant Lazaruk, HyLife's chief executive officer. "Together, our globally established companies will significantly strengthen our market position. Not only do we share similar values, but our strategies also correspond with one another. Through this agreement, we will build on the success of our growing pork business and brands to our customers globally, including our fresh chilled pork products to Japan which we proudly grow and process right here in Manitoba.”

CPF has livestock, aquaculture, animal feed and restaurant businesses across 17 countries.

“This new agreement will ensure continued job creation across the province and beyond as well as promote increased demand for our value-added pork.” said HyLife President Claude Vielfaure. “The Province of Manitoba has been open for business and has empowered our company to attract foreign investment and to enable us to grow our integrated pork company domestically and internationally. We are proud to put Manitoba on the world map and look forward to continuing our outstanding relationship with suppliers, partners and communities across Manitoba.”

The transaction is subject to customary conditions and Canadian and international regulatory approvals and is expected to close during the third quarter of 2019.

Headquartered in La Broquerie, Manitoba, HyLife employs over 2,500 people in multiple countries. The company produces 2.3 million hogs and processes 2 million hogs annually, with the pork being sold to over 20 countries.

 

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