The Successful Investor Hotline – Friday, August 23, 2013

Article Excerpt

MAPLE LEAF FOODS INC., $14.44, Toronto symbol MFI, rose 8% on Friday after it agreed to sell its Rothsay rendering operations to Texas-based Darling International Inc. (New York symbol DAR). Rothsay recycles by-products from Maple Leaf’s main meat-processing operations into a variety of ingredients for other products, including animal feed, soaps, lotions, cosmetics, fertilizers and plastics. Rothsay also makes biodiesel fuels. Maple Leaf will receive $645 million when the deal closes, probably by the end of 2013. That’s equal to 32% of its $2.0-billion market cap (or the value of all of its outstanding shares). The company will use the cash to pay down its long-term debt, which was $1.3 billion at June 30, 2013. Maple Leaf Foods is a buy. Please make sure you are logged in to your account to access these articles. Click here if you’ve lost your password. Maple Leaf Foods was recently covered in the September 2013 issue of The Successful Investor. Click here to access it. Maple Leaf…