The biggest rendering firm in the U.S. has been granted the go-ahead from Canada's Competition Bureau to buy Canada's top rendering company.
Toronto food processing giant Maple Leaf Foods announced Thursday its $645 million deal to sell Rothsay to Texas-based Darling International will be allowed under Canada's Competition Act.
Maple Leaf now expects the sale, first announced in August, to close on Oct. 28, "subject to satisfaction of remaining conditions."
Darling would then get Guelph-based Rothsay's six rendering plants in Manitoba, Ontario, Quebec and Nova Scotia and its biodiesel facility in Quebec. In all, Rothsay's operations employ about 550 people who, it's expected, would transition to work for Darling.
Maple Leaf reiterated Thursday that proceeds from the deal will "initially be used to pay down debt." The company has been in streamlining mode in recent years, aiming to focus on its prepared meats and packaged foods businesses.
Once Maple Leaf carries out its prepared meats strategy, it said it will consider "appropriate deployment of excess capital" from the sale, such as reinvesting in the consumer packaged food businesses or "returning excess capital to shareholders." -- AGCanada.com Network
Maple Leaf to sell renderer Rothsay, Aug. 23, 2013