Maple Leaf Foods spinning off pork business, Dennis Organ to lead new company

Maple Leaf Foods Inc. is spinning off its pork business with Dennis Organ to serve as chief executive of the new company. 

The company announced its plan Tuesday (July 9) to separate into two public independent companies. The spinoff is slated to be completed in 2025.  

Maple Leaf Foods will retain a 19.9% ownership position in the new pork company. The two businesses will also enter into an evergreen pork supply agreement. 

In turn, Maple Leaf Foods will provide brokerage services in North America, as well as “certain other services,” the company said. 

The name of the pork business is expected to be announced in the coming months. 

"This transaction is the start of a new era to unlock the full potential of two outstanding businesses, each with a distinct value proposition and growth opportunities," said Curtis Frank, president and CEO of Maple Leaf Foods, in a release. "As separate companies, Maple Leaf Foods and the new Pork Company will each have exciting prospects, a sharpened execution focus with its own dedicated management team, and the financial independence to pursue its own value creation strategy, all with an uncompromising commitment to safety and sustainability."

Frank will continue to lead Maple Leaf Foods, along with president and chief operating officer Adam Grogan and chief financial officer David Smales. 

Organ, set to helm the new pork company, joined Maple Leaf Foods in February of last year as president, pork complex. 

He previously spent 11 years with Smithfield Foods, holding a variety of positions including chief operating officer and chief executive officer.

Going forward, Maple Leaf Foods says it will focus on driving growth in sustainable meats, expanding its reach in the U.S. and diversifying its portfolio of protein products. 

"The new pork company will offer investors direct access to one of the world's foremost, premium value-added pork producers with a clear vision to produce meat the right way while delivering industry-leading financial performance," Organ said in a statement. "We are already setting the standard for best practices in sustainability, animal welfare, and high-quality pork production. We have seen positive momentum in the business in recent quarters as pork markets continue to normalize following several years of material disruption, and we are extremely well-positioned as a standalone company to leverage our unique advantages to drive growth and generate value."