Foster Farms Signs Purchase Agreement for Pilgrim's Pride's Farmerville, Louisiana, Facilities; Transition Plans in Place
Posted on: Friday, 8 May 2009, 07:00 CDT
LIVINGSTON, Calif., May 8 /PRNewswire/ -- Foster Farms is pleased to announce that it has entered into a definitive asset purchase agreement with Pilgrim's Pride Corporation to acquire Pilgrim's Pride's Farmerville, Louisiana, chicken complex for $80 million. Completion of the transaction is subject to customary closing conditions, including government approval and U.S. Bankruptcy Court approval, with an anticipated closing within 14 days.
The Farmerville complex includes a chicken processing facility, a cook plant, two hatcheries, a feed mill, and a protein conversion plant. "Foster Farms is looking forward to expanding our operations into the State of Louisiana," said Foster Farms CEO Ron Foster. "Foster Farms anticipates upgrading and adding to the capabilities of the Farmerville complex. These enhancements, when operational and used in conjunction with the experienced local work force, will allow us to build a strong sales base, leading to a return to full double shift capacity, over time, after Foster Farms' purchase."
According to Foster, Pilgrim's Pride has committed to placing eggs in the Farmerville hatchery immediately. When hatched, these chicks will be placed in local farms owned by independent growers. Foster Farms' operation will continue to utilize the established network of experienced local growers, both to grow chicks, as well as the pullets and breeders necessary for an ongoing supply of hatching eggs. In the upcoming weeks, company representatives will be in Northeast Louisiana to meet with local growers individually. Foster Farms looks forward to restarting plant operations by Mid July, offering customers fresh locally grown chicken.
"Foster Farms wishes to thank Governor Jindal, his staff and the State of Louisiana for their active support of this transaction and their financial support of our investment in Northeast Louisiana," said Foster.
About Foster Farms
Since 1939, families have depended on Foster Farms for premium quality chicken and turkey products. Family-owned and operated, the company continues its legacy of excellence and commitment to quality established by its founders, Max and Verda Foster. Foster Farms specializes in fresh, all natural chicken and turkey products free of preservatives, additives or injected sodium enhancers. Based in California's Central Valley, with ranches also in the Pacific Northwest, the company's fresh chicken and turkey are produced in or near each region served. Foster Farms also produces delicious pre-marinated, ready-to-cook and fully cooked products that meet the quality and convenience needs of today's home cooks, retailers, warehouse clubs and foodservice customers. The company's commitment to excellence, honesty, quality, service, and people is a source of great pride, and, a longtime family tradition.
SOURCE Foster Farms
Source: PR Newswire
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