The company is intending to finance its debt from the proceeds of the divestment.

Maple Leaf Foods president and CEO Michael McCain said that the sale of its rendering and biodiesel business supports their strategy to focus on effective capital deployment and profitable growth in the consumer packaged foods market.

"We are delighted to have concluded almost a year-long process with an agreement with Darling, the North American leader in food waste recycling," added McCain.

"The sale will support future investments in our consumer facing businesses and allow Darling to build on Rothsay’s strong capabilities and deep customer relationships."

Maple Leaf said that following the conclusion of the prepared meats strategy, the company would take up excess capital deployment program, including reinvesting in its core consumer packaged food businesses or returning excess capital to shareholders.

It is keen to enter into a long term contract with Darling to receive by-products recycling services at competitive market rates, the company added.

Subject to regulatory approvals, the transaction is expected to close by the end of 2013.