The largest family-owned pork production company in North America, The Maschhoffs, has signed a definitive agreement to acquire GNP Company, a Midwest poultry producer.
GNP Company and The Maschhoffs' pork production business will operate as separate business units following the closing of the transaction. The transaction will have no immediate impact on GNP Company's chicken business or The Maschhoffs' pork production business, a statement on behalf of both company's reported.
"No changes in business operations or company commitments are planned as a result of this acquisition," stated Mike Helgeson, GNP Company Chief Executive Officer and third-generation leader. "GNP Company will continue to build on its reputation as the Midwest's leading provider of premium quality chicken brands and products."
"Our intent is to manage GNP Company as a separate business unit next to our current pork production business," said Jason Logsdon, The Maschhoffs Chief Executive Officer. "GNP Company will continue to be led by its present management team, with the support of its current team members and contract growers."
The transaction provides the capital and long-term resources that GNP Company needs to grow to meet increasing sales demand for its products and brands. GNP Company sales are expected to be about $400 million in 2013. "For the past year, our facilities have been running at capacity with more demand on the horizon," Helgeson said.
"By joining forces, we can leverage our core strengths, capitalise on growth opportunities, and create new value in the marketplace—thus making the combined company stronger than each would be separately," said Logsdon, adding that the transaction makes new resources available to both companies. "This gives each business unit the opportunity to take advantage of growth opportunities that will help make us all more successful," he said. "Over time, the companies will share best practices, leverage select strategic shared resources, and benefit from the balance sheet strength of an organization that is diversified across multiple proteins."
"Our overall goal is to continue to grow both the pork and chicken businesses while enhancing our ability to meet the needs of our valued customers and of a growing population," Logsdon said.
GNP Company's headquarters will remain in St. Cloud, Minn., and its nearly 1,700 team members and 350 family farm partners will be retained.