Olymel completes C$65.25 million acquisition of the Canadian assets of Big Sky Farms
January 20, 2013
65.25 Million CAD
On January 21, 2013, Olymel l.p. ("Olymel") announced the acquisition of the Canadian assets of Big Sky Farms Inc., and its related entities (collectively, ''Big Sky Farms''). Big Sky Farms had been placed in receivership last September when it was unable to meet its obligations after significant losses, due mainly to the soaring price of grain used for animal feed and depressed hog prices.
Olymel and Ernst & Young, the court-appointed receiver of Big Sky Farms, entered into a purchase and sale agreement dated October 16, 2012, at a purchase price of C$65.25 million, subject to certain adjustments. This purchase agreement was subsequently approved, subject only to a receiver mandated sale process, on October 19, 2012 by the Saskatchewan Court of Queen's Bench. This transaction, which was concluded on January 20, 2013, makes Olymel's subsidiary, OlySky Limited Partnership, owner of the Canadian assets of Big Sky Farms.
The Canadian assets of Big Sky Farms and its related entities is considered the second largest hog producer in Canada.
Olymel, headquartered in Saint-Hyacinthe, Québec, is a Canadian leader in the slaughtering, processing and distribution of pork and poultry, with facilities in Quebec, Ontario, Alberta, Saskatchewan and New Brunswick.
Big Sky Farms, headquartered in Humboldt, Saskatchewan is the second largest hog production company in Canada.
McCarthy Tétrault LLP represented Olymel, as acquiror. The team was led by Eric Gosselin and consisted of Jean-Christophe Biron, Marilyn Leblanc, Madeleine Renaud, Matthieu Rheault, and Alain Tardif.