STE. HYACINTHE, Quebec – Olymel, one of Canada’s largest pork processors, has offered $65.25 million (US$66.58 million) to buy Big Sky Farms, the country’s second-largest hog producer, according to Reuters.
Soaring feed costs pushed the Humboldt, Saskatchewan-based Big Sky Farms into receivership in September. Casey Smit, chief executive officer of Big Sky Farms, said then that the company was losing $40 to C$50 (US$41-$51) per head sent to market. The company racked up $69 million (US$70 million) in debt to secured creditors.
Other bidders can make offers until Nov. 9, and the court will approve a winning bid in mid-January. If there are no other bids for the company by the deadline, the sale with Olymel will close. Maple Leaf Foods in Toronto has expressed interest in the company.
Olymel currently operates two bacon production facilities in Drummondville, Quebec and Cornwall, Ontario, in addition to nine pork processing and packing plants and a several poultry facilities.
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