Seaboard to acquire some Christensen Farms hog ops
Feb. 1, 2016
by Erica Shaffer
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SHAWNEE MISSION, Kan. – Seaboard Foods LLC and Seaboard Foods of Iowa LLC, subsidiaries of Seaboard Corp., recently agreed to purchase a portion of Christensen Farms & Feedlot Inc.’s hog inventory, a feed mill and truck washes, “certain hog farms in Colorado” and other assets for approximately $71.1 million in cash, according to documents filed with the Securities and Exchange Commission.
The agreement includes Woodford Creek Farms LLP, which agreed to purchase hog farms in Iowa for approximately $75.8 million. Seaboard also entered an agreement with Woodford Creek to raise hogs in Iowa.
Christensen Farms is a shareholder in Triumph Foods LLC. Seaboard formed a joint venture with Triumph called Seaboard Triumph Foods LLC to build a new pork processing plant in Sioux City, Iowa. “Seaboard Foods made market hog supply commitments to the Sioux City plant as part of the joint venture,” the SEC documents said “and with this purchase, Seaboard Foods will increase its sow herd to meet such supply commitments.
“Seaboard Foods will contract with numerous third-party owned contractors to raise and care for the hogs, including Woodford.”