Marubeni Corp. to acquire Creekstone Farms
July 21, 2017
by MEAT+POULTRY Staff
Sun Capital Partners first acquired the premium beef processor in 2005.
TOKYO – Marubeni Corporation, a diversified Japanese trading conglomerate, announced the company will acquire Arkansas City, Kansas-based Creekstone Farms Premium Beef LLC from Sun Capital Partners, a private equity firm. Terms of the transaction were not disclosed.
“We’re proud of our success building Creekstone Farms into a leading international provider of top-grade meats,” Marc Leder, co-CEO of Sun Capital, said in a statement. “Throughout the course of this investment, the Sun Capital team partnered with management to drive strategic initiatives that enabled Creekstone Farms to thrive despite broader industry challenges. We are looking forward to seeing the business continue to prosper under its new ownership.”
Creekstone Farms supplies Black Angus Beef, antibiotic-free Duroc Pork and other value-added products to top grocers and restaurants in the United States, as well as exporting to Europe, Latin America and Asia. Marubeni explained in a news release that the acquisition of Creekstone and its subsidiary, Rangers Valley, “…will secure its production base in the two largest beef-producing countries and establishes its organization to meet the globally-growing need for high quality beef.” Rangers Valley is a cattle feeding and beef distribution operation in Australia.
“Through this acquisition, Marubeni aims to become a truly global company which contributes to a steady supply of safe, delicious beef while contributing to the society and local economy,” the company said.
A Sun Capital affiliate acquired Creekstone Farms in February 2005. Since then, the private equity firm added to the management team a group of highly-experienced industry veterans, expanded Creekstone’s line of all-natural products to roughly 22 percent of production from less than 5 percent at acquisition, and expanded the processor’s international business by more than 800 percent to approximately 20 percent of total sales.
“We followed a comprehensive strategy for improving Creekstone Farms,” said Jordan Wadsworth, principal at Sun Capital. “By bringing in a best-in-industry leadership team and expanding our product offerings in line with trends in consumer demand, we were able to improve Creekstone Farms’ business fundamentals and turn a good company into a great one.”
Founded in 1858, Marubeni’s business dealings span a broad range of industries including power projects and infrastructure, industrial plants and machinery, finance, logistics and information, and real estate development and construction in addition to food products, textiles, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, and offshore trading.