Olymel goes ahead with acquisition of Pinnacle Farms in Alberta

HUMBOLDT, SK, Nov. 25, 2016 /CNW Telbec/ - Olymel L.P. today announced the acquisition of Pinnacle Farms Inc., a major hog producer located just east of Calgary, near Strathmore, Alberta. Olymel becomes the owner of all inventory and will now take over management of Pinnacle Farms operations. Pinnacle employs 30 persons who will now join the Olymel workforce. The transaction amount was not disclosed.

The assets acquired by Olymel today include a quarantine barn, sow barns, nursery barns and finishing barns. In addition to these Pinnacle facilities, Olymel will lease finishing farms near Medicine Hat, Alberta.

"Olymel is pleased to welcome the employees of Pinnacle Farms into its family. Their experience will be invaluable to Olymel, which receives a boost to its hog production operations in Western Canada. I would like to thank Ron Arnason, President of Pinnacle Farms, and Verus Management, Pinnacle's partner with which we have had business relationships for many years and which established the climate of trust that led to this transaction. This addition in our pork sector should support the target Olymel has set for 2020 : to produce more than 1.5 million hogs annually in Western Canada in order to meet the growing demand from its customers," noted Olymel L.P. President and CEO Réjean Nadeau.

This acquisition will bring the number of sows available to Olymel in the West to 52,000. The transaction will also make it possible to deliver 100,000 more hogs annually to the Olymel processing plant in Red Deer, Alberta, whereas these pigs were previously sold as iso-weans and feeders to other buyers in Alberta and the United States. The Olymel pork processing plant in Red Deer has more than 1,540 employees. To turn the additional pigs into market hogs, Olymel will require 30,000 contract finishing spaces through new or existing capacity in Alberta.

"Pinnacle has been supplying finishing hogs to Olymel for more than 4 years, so our two companies have had time to get to know one another. Verus Management and I are pleased with the conclusion of this relationship and the transaction we are announcing today. We are confident that Pinnacle Farms employees will find a dynamic environment at Olymel where they can maximize their work. This transaction opens the door to the company's further development, and will enable it to serve new markets," says Ron Arnason, director of Pinnacle Farms Inc.

About Olymel

Olymel L.P. is Canada's leader in the production, processing and distribution of pork and poultry meats. The company, which celebrates its 25^th anniversary in 2016, has made feeding the world its mission, which it pursues passionately with products of impeccable quality. In carrying out its mission every day, Olymel relies on its tradition of maintaining a strong link between farm and table, as well as on innovation and attention to customer and consumer needs. The company employs close to 11,500 persons, including more than 8,000 in Quebec, and has large facilities in Ontario, Alberta, New Brunswick and Saskatchewan. Olymel exports nearly a third of its total sales, mainly to the United States, Japan and Australia, as well as over 65 other countries. Its annual sales are on the order of 3.2 billion dollars. The company markets its products mainly under the Olymel, Lafleur and Flamingo brands. For additional information about the company, visit www.olymel.ca

SOURCE Olymel l.p.

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