The Maschhoffs, LLC, announced Friday the company has signed a definitive agreement to acquire poultry group GNP Company and its subsidiaries.
GNP Company produces poultry under the Gold'n Plump, Just BARE and Sunny Roost brand labels. The Maschoffs are the largest family-owned pork production company in North America.
According to a press statement, 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, the statement said.
"Our intent is to manage GNP Company as a separate business unit next to our current pork production business," said Jason Logsdon, The Maschhoffs CEO. "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, the statement said. GNP Company sales are expected to be about $400 million in 2013.
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.
The Maschhoffs, owned by fifth generation family members Dave Maschhoff and his wife Karen, and Ken Maschhoff and his wife Julie, is based in Carlyle, Ill. The Maschhoffs partners with more than 450 family farmers across the Midwest to produce enough pork to feed more than 16 million consumers annually.
"By joining forces, we can leverage our core strengths, capitalize 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.
"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 added.
Mike Helgeson, GNP Company CEO, said it was important to him to find a partner with like-minded values and culture as well as a strong commitment to growth.
"This is a win-win from both the business and organizational standpoints," he explained, "one that provides the critical resources for growth and secures a strong future for all of our team members and growers."
Source: The Maschoffs