Maple Leaf studying options for shareholdings in Canada Bread Co.
Canadian producer of baked goods and meats, Maple Leaf Food Inc, is contemplating the sale of its owned 90% stake in Canada Bread Co. The purpose of such sale is for the company to focus on its protein business ventures.
According to Maple Leaf Foods Inc CEO Michael McCain through an investor call, "We are confident that our bakery business can deliver significantly higher levels of profitable growth. The only question is how best to realize the future value of this business." He added that the review of options for the company is expected to get done by 2014.
Under a seven year restructuring plan of the company, Maple Leaf would be closing down plants and increasing efficiency at others would help in making the firm's global protein business a profitable endeavor. For its part, Canada Bread makes fresh and frozen flour food and then sells them under brand names Dempster's, Olafson's and Olivieri according to the statement.
The company had created a special committee of independent directors to manage the review as well as utilize the proceeds earned if the Canada Bread shareholdings are sold. The funds may be used for debt repayment, reinvestment and capital return to shareholders.