The country's largest pork producer The Maschhoffs LLC based in Carlyle, Illonois ,said on Friday that it will buy American chicken company GNP Company for an undisclosed amount.
The Maschhoffs is currently the largest family-owned pork producer in the United States.
According to Reuters, the companies will operate as separate entities following the buyout deal. It is expected to close before the year ends.
The Maschhoffs chief executive officer Jason Logsdon in a statement said that GNP Company will be managed as a separate business unit next to its pork production business.
Meanwhile, GNP Company will continue to be led by its current management and retain its current team members and contract growers, the statement said.
Reuters, citing Logsdon, said that the takeover will enable both companies to leverage their core strengths and capitalize on growth opportunities.
When asked about a possible public offering or additional acquisitions, a Maschhoffs spokesperson told Reuters that there are no plans for an IPO. The pork producer is always looking for acquisition opportunities that make business sense, he added.
In 2012, The Maschhoffs earned a revenue of USD736 million, the report said. It is expected to hit USD820 million to USD825 million by the end of fiscal year 2013.
GNP Company pegged its chicken sales estimates for the year at USD400 million. With contract growers in over 350 farms in Minnesota and Wisconsin, GNP Company is the 18th-largest broiler producer in the US in 2013, the report said.
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