Lilydale sold for $130M

Edmonton-based Lilydale Inc. announced Thursday it is being acquired by Sofina Foods for more than $130 million.

Privately owned Sofina will pay $75 million in cash and debentures for the producer-owned poultry processor, and assume about $55 million in debt.

Markham-based Sofina has also committed to spending $20 million over the next two years to upgrade Lilydale's production capacity.

"Over the past several years, Lilydale has been approached by a number of different companies regarding potential transactions; however, the company did not feel that any of those potential suitors were the right fit until now," chairman Don Sundgaard said in a statement.

Sofina has 1,200 employees at six facilities and sells products under the Fletchers, Cuddy, Quality Meats and Vienna brands. Lilydale has 2,100 employees at two Edmonton plants, and single facilities in Calgary, Abbotsford and Port Coquitlam, B.C., and Wynyard, Sask.

The new company will have more than $800 million in revenue, second only to Maple Leaf Foods.

Lilydale's shareholders will vote on the deal April 6.

Lilydale wasestablished in 1940, whenits primarybusiness was providing eggs to Great Britain during the Second World War.