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Maple Leaf Foods Announces Definitive Agreement to Sell its Potato Processing Facility to Cavendish Farms

TSX: MFI

www.mapleleaffoods.com

TORONTO, Dec. 10, 2012 /CNW/ - Maple Leaf Foods Inc. (TSX: MFI) today announced that it has entered into a definitive agreement to sell its potato processing facility in Lethbridge, Alberta to Cavendish Farms, an affiliate of J.D. Irving Ltd.

The Lethbridge facility employs approximately 135 people and makes a variety of frozen French fries, hash browns and specialty potato products.  The business has annual sales of approximately $75 million and markets its products to domestic and international customers. Maple Leaf will realize proceeds of approximately $60 million from the sale, which includes inventory and working capital, which will be used to pay down debt. The transaction is expected to close by the end of December, 2012.

"This business will be in good hands in a company that is focused on growth in the value added potato business," said Michael McCain, President and CEO. "The quality of our products and strength of our people, customer and producer relationships were pivotal to completing this agreement," said Michael McCain, President and CEO, Maple Leaf Foods.

Cavendish Farms is a producer of frozen potato and appetizer products and a leader in the food industry.  It supplies North American and international customers for retail, restaurant and institutional use. For more information, visit the company's website at www.cavendishfarms.com.

Maple Leaf Foods is a leading Canadian meat, meals and bakery company committed to delivering nutritious and innovative food products to consumers around the world. Headquartered in Toronto, Canada, the Company employs approximately 19,500 people at its operations across Canada and in the United States, Europe and Asia. For more information, visit www.mapleleaf.com.

SOURCE Maple Leaf Foods Inc.

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