The Maschoffs, a family owned pork operation, announced the company has acquired St. Cloud, Minn.-based GNP Company, maker of chicken products under the Gold'n Plump, Just BARE and Sunny Roost brands.
The company signed a definitive agreement by which The Maschoffs will acquire GNP and all its subsidiaries. The pork and poultry businesses will operate as separate business units upon closing of the transaction. Both companies said the deal will have no immediate effects on either business. No additional details of the deal were released.
GNP Company noted that the agreement provides the capital and long-term resources the company needs to meet rising sales demand for GNP products and brands. GNP Company expects sales to reach approximately $400 million in 2013. "For the past year, our facilities have been running at capacity with more demand on the horizon," said Mike Helgeson, GNP Company CEO.
"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. "This gives each business unit the opportunity to take advantage of growth opportunities that will help make us all more successful," he added. "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."
GNP Company’s headquarters will remain in St. Cloud, Minn., and its nearly 1,700 employees and 350 family farm partners will be retained, the company said.
Jason Logsdon, The Maschhoffs CEO, said the pork production business unit will focus on maintaining and enhancing its position as a leading pork production company. The Maschhoffs, based in Carlyle, Ill., is owned by fifth generation family members Dave Maschhoff and his wife Karen, and Ken Maschhoff and his wife Julie. The Maschhoffs partnership includes more than 450 family farms across the Midwest. The company produces pork products that reach more than 16 million consumers annually, according to The Maschoffs.
"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.