Maple Leaf Foods says it's buying Manitoba hog production company Puratone Corporation for $42 million.
The Toronto-based food producer said Thursday the deal includes livestock, facilities and interests in some joint ventures.
Maple Leaf says it expects the deal, which is subject to court and regulatory approvals, to close within a month.
"This acquisition will ensure a consistent supply of hogs to our processing facility in Brandon, which is an integral supplier to our value added prepared meats and pork business," said Michael McCain, president and CEO.
"We look forward to welcoming Puratone employees to Maple Leaf and benefiting from their experience and strong commitment to best practices."
Puratone operates about 50 barns in the Manitoba area and produces approximately 500,000 hogs annually. It also operates three feed mills.
The deal will give Maple Leaf ownership of 30 per cent of its hog supply coming into its Brandon facility.
Maple Leaf says both operations will be integrated and no immediate changes are anticipated.
On Wednesday, the company reported a drop in net earnings during the third quarter, due to lower revenues and a write down on the value of some assets.
Maple Leaf Food's net earnings fell to $32.6 million, or 22 cents per share. That missed expectations of 28 cents per share and were below the reported $43 million in the third quarter of 2011.
The weaker results were mostly from a $13-million decrease in the fair value of the company's biological assets.
