The latest deal in the food sector came on Tuesday this week when Canadian meat company Maple Leaf Foods announced it has signed a definitive agreement with Brynwood Partners VI L.P. to acquire Lightlife Foods, for $140 million and related costs. The deal is expected to close in March, subject to the customary U.S. regulatory review.
Lightlife Foods is based in Turner Falls, Massachusetts and is a leading manufacturer of refrigerated plant-based protein foods, manufacturing more than 30 innovative products, including plant-based hot dogs, breakfast foods, sausages, burgers, vegetarian deli meats, and other meatless foods. Lightlife’s management will continue to run the company, which will operate as a subsidiary of Maple Leaf.
“Expanding into the fast growing plant-based proteins market is one of Maple Leaf’s strategic growth platforms and supports our commitment to become a leader in sustainability,” said Michael McCain, Maple Leaf President and CEO. “Consumers are increasingly looking to diversify their protein consumption, including plant-based options. The acquisition of Lightlife provides Maple Leaf with a leading market position and brand in the United States in a category that is outpacing growth in the broader packaged foods sector. We will expand our presence through investment in brand building, innovation and leveraging our respective capabilities.”
Lightlife reported 2016 sales of approximately US$40 million and has 38-percent market share in the U.S. refrigerated plant proteins market. The company employs approximately 100 people at its facility in Massachusetts.
“We at Lightlife are truly excited about this announcement, which will allow us to accelerate our growth and broaden our reach in the fast growing plant-based protein market. Maple Leaf Foods has an industry leading commitment to sustainable protein, including a strategic focus on plant proteins, and being part of this incredible organization will enable the continued growth of our brands,” said Roy Lubetkin, President and CEO, Lightlife Foods.
Maple Leaf Foods employs approximately 11,000 people across Canada and exports to global markets, including the United States and Asia. The company is headquartered in Mississauga, Ontario and its shares trade on the Toronto Stock Exchange.
The U.S. market for plant-based proteins is estimated at US$600 million, with the refrigerated category representing over US$110 million and delivering double-digit annual growth.
