MAPLE LEAF FOODS INC. $13
(Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 140.0 million; Market cap: $1.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.2%; TSINetwork Rating: Average; www.mapleleaf.ca) has received regulatory approval for its plan to sell its Rothsay rendering operations.
Rothsay recycles by-products from Maple Leaf’s main meatprocessing operations into a variety of ingredients for other products, including animal feed, soaps, lotions, cosmetics, fertilizers and plastics. Rothsay also makes biodiesel fuels.
The company will receive $645 million when the deal closes on October 28, 2013. It will use the cash to pay down its $1.3 billion of long-term debt.
Maple Leaf Foods is a buy.