Chinese company intends to buy U.S. processor...

Chinese company intends to buy U.S. processors

China-based hog production and processing company AgFeed Industries announced it has signed separate non-binding letters of intent to acquire Pine Ridge Farms, LLC and Kansas City Sausage Company, LLC.

AgFeed feels that this processing capability is the necessary precursor to the Company's global market strategy. It is expected that the combined businesses will add over $180 million of annualized revenue and over $13 million of EBITDA to the Company's results.

Des Moines, Iowa-based Pine Ridge Farms is a specialty hog processing facility established in January 2004. It has processing capacity of over 3,000 animals per day. Currently PRF is processing approximately 1,850 sows/boars and 1,150 butcher hogs. PRF manufactures pre-rigor for sausage, fresh and frozen pork products, and private label products.

Kansas City Sausage is a private-label sausage company that started operations in late 2009. It sells products domestically and exports products to Canada, Mexico, the Caribbean and the Pacific Rim.

AgFeed Industries also announced executive promotions and reassignments as well the addition of a new independent director.
Source: AgFeed Industries, Inc.