Pilgrim's Pride Corporation (Pink Sheets: PGPDQ) today announced that it has signed a definitive agreement to sell its chicken complex in Farmerville, La., to Foster Farms for $80 million, subject to a price adjustment for associated inventory and other reimbursements. Completion of the transaction is contingent upon customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott Rodino Improvements Act and approval by the U.S. Bankruptcy Court. The transaction is also subject to Foster Farms' receipt of $40 million from the State of Louisiana in order to fund a portion of the purchase price. The sale is expected to be completed within 30 days.
The U.S. Bankruptcy Court has approved procedures for the sale of the Farmerville complex assets. The sale will be completed via an auction in accordance with Section 363 of the U.S. Bankruptcy Code. The Court set May 15, 2009, at 12:00 p.m. Central as the deadline for the submission of qualified bid packages, and scheduled an auction for May 18, 2009, at 10:00 a.m. Central at the offices of Weil, Gotshal & Manges LLP, 200 Crescent Court, Suite 300, Dallas, Texas 75201. At that time, the company will sell its assets to Foster Farms or another qualified bidder, if such bidder makes the highest and best offer for the assets. A hearing to approve the sale has been scheduled for May 19, 2009, at 10:30 a.m. Central.
The Farmerville complex includes a processing facility, a cook plant, two hatcheries, a feed mill, a protein conversion plant and any associated inventory.
"We thank Foster Farms, Governor Bobby Jindal and the State of Louisiana for their commitment to this sale," said Don Jackson, president and chief executive officer. "We believe it is in the best interest of all parties involved, including our employees, growers, the Farmerville community and our creditors."
