HyLife Ltd. – one of Canada’s major pork packers – has entered an agreement with Bangkok-headquartered Charoen Pokphand Foods, which will buy 50.1% of its shares for USD372.7m. The Manitoba-based pork product company’s other major shareholder is the Japanese Itochu Corporation, which owns 49.9% of its shares.
The deal will help propel HyLife’s growth into the fast-growing Asian, as well as North American and international markets.
“This is a win-win for HyLife, Charoen and Manitoba’s agricultural industry. 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,” said Grant Lazaruk, chief executive officer of HyLife. “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 in Manitoba,” Lazaruk went on.
Combining forces will propel the growing demand for HyLife’s high-quality pork products (including frozen options) and enable the company to grow its current 2,500+ employee workforce.
According to the official press release, the transaction is subject to customary conditions and Canadian and international regulatory approval and is expected to close during the third quarter of 2019.