Continuing to invest in North American assets, Bangkok-headquartered Charoen Pokphand Foods (CPF) announced on April 22 that it is buying 50.1% of HyLife Ltd. for C$ 498 million (US$ 372.7 million). The La Broquerie, Manitoba-based value-added pork products company’s other major shareholder is Itochu Corporation of Japan.
“This is a win-win for HyLife, CPF and Manitoba’s agricultural industry,” said HyLife CEO Grant Lazaruk. “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.”
The deal, subject to Canadian and international regulatory approvals, is expected to be finalized during the third quarter of 2019.
HyLife is Canada’s No. 1 pork producer, raising 2.25 million hogs per year and exporting products to 20 or more countries. The acquisition gives Charoen Pokphand Foods access to a pork production base and opportunity to expand further in North America as well as Japan and China.
CPF, which rang up sales of $14.8 billion in 2018 and ranks as Thailand’s largest agri-business conglomerate, bought Minneapolis, Minnesota, USA-headquartered Bellisio Foods a few years ago for $1.8 billion. Among the wide range of frozen products packed by Bellisio are Michelina’s, Boston Market, Chili’s, EatingWell and Atkins brand ready meals and entrées.
Meanwhile, just last month Charoen Pokphand Foods and Legal Sea Foods partnered in a co-packing deal in which farm-raised premium shrimp will be produced in Thailand for the Boston, Massachusetts-headquartered restaurant chain. It operates 37 units and an online fish market that ships product across North America, including frozen retail packs.