Pilgrim’s Pride completes sale of chicken complex

by Editor fleischwirtschaft.com
Monday, May 25, 2009

Pilgrim’s Pride Corporation announced that it has completed the sale of its chicken complex in Farmerville, La., to Foster Farms for approximately $72.3 million.

The final sale price was adjusted for associated inventory and other reimbursements. The Farmerville complex includes a processing facility, a cook plant, two hatcheries, a feed mill and a protein conversion plant.

Separately, Pilgrim’s Pride announced that it had fully repaid its $450 million debtor-in-possession financing facility as of May 15, 2009. As such, the proceeds of the Farmerville sale will be held in a cash collateral account and used for general corporate operating purposes as needed.

As previously announced, the company and certain subsidiaries filed voluntary Chapter 11 petitions on December 1, 2008. The company's operations in Mexico and certain operations in the United States were not included in the filing and continue to operate as usual outside of the Chapter 11 process.

Pilgrim's Pride Corporation employs approximately 47,000 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico and Mexico.