Pilgrim's Pride Corporation recently announced it will sell its poultry complex in Farmerville, La., to Foster Farms for $80 million, according to a news release. The transaction is subject to the parties entering into a purchase agreement, the expiration or termination of a waiting period and approval by the U.S. Bankruptcy Court.
According to the release, the company expects the transaction to be complete within 30 days from signing the purchase agreement.
The Farmerville operation includes a processing facility, cook plant, hatchery, feed mill, protein conversion plant and any associated inventory.
Foster Farms partners with Louisiana
Foster Farms is putting up $40 million and the state will match with $40 million. In addition, Foster Farms will invest $10 million in capital improvements to the complex, which the state will also match.
One concern Louisiana residents have had is that if the Farmerville plant was saved, it could mean the loss of, or a cut-down at the Pilgrim’s Pride facility in Natchitoches.
Louisiana Agriculture Commissioner Mike Strain said the Natchitoches plant won’t be affected if Pilgrim’s decides to curtail production at one or more of its plants. Pilgrim’s announced it was also idling facilities in Arkansas and Georgia when it announced to do the same in Farmerville.
At this time it is unclear if the corporation will idle or close an additional facility since the deal with Foster Farms has been made.
Pilgrim’s Pride filed voluntary Chapter 11 petitions Dec. 1, 2008. Its operations in Mexico and certain operations in the U.S. were not included in the filing.