The Maschhoffs LLC, the largest family-owned pork production company in North America, and GNP Co., the Midwest’s leading provider of premium quality chicken under the Gold’n Plump, Just BARE and Sunny Roost brand labels, have signed a definitive agreement whereby The Maschhoffs will acquire GNP Co. and its subsidiaries.
GNP Co. and The Maschhoffs’ pork production business will operate as separate business units following the closing of the transaction. The transaction will have no immediate impact on GNP Co.’s chicken business or The Maschhoffs’ pork production business.
GNP Co.’s headquarters will remain in St. Cloud, Minn., and its nearly 1,700 team members and 350 family farm partners will be retained. Based in Carlyle, Ill., The Maschhoffs is owned by fifth-generation family members Dave Maschhoff and his wife Karen and Ken Maschhoff and his wife Julie. The Maschhoffs partners with more than 450 family farmers across the Midwest to produce enough pork to feed more than 16 million consumers annually.
“No changes in business operations or company commitments are planned as a result of this acquisition,” said Mike Helgeson, GNP Co.’s CEO and third-generation leader. “GNP Co. will continue to build on its reputation as the Midwest’s leading provider of premium quality chicken brands and products.”
Meanwhile, The Maschhoffs’ pork production business unit will continue to dedicate its energies to maintaining and enhancing its position as North America’s leading pork production company.
“Our intent is to manage GNP Co. as a separate business unit next to our current pork production business,” said Jason Logsdon, The Maschhoffs’ CEO. “GNP Co. will continue to be led by its present management team with the support of its current team members and contract growers.”
The transaction provides the capital and long-term resources that GNP Co. needs to grow to meet increasing sales demand for its products and brands. GNP Co. sales are expected to be about $400 million in 2013.
“For the past year, our facilities have been running at capacity with more demand on the horizon,” Helgeson said.
“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. 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.
“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,” he added.
Helgeson noted it was important to him to find a partner with like-minded values and culture as well as a strong commitment to growth.
“This is a win-win from both the business and organizational standpoints,” he said, “one that provides the critical resources for growth and secures a strong future for all of our team members and growers.”