Cargill is set to buy two of the three feed mills up for sales by bankrupted Pennfield Corporation for US$8.5 million.
Lancaster based Pennfield Corporation, a 93 year old company that supplies animal feed and other services over a multi-state region of the east coast, filed for voluntary chapter 11 bankruptcy in October 2011. This came after the company suffered millions of dollars of losses over the past three years.
The company agreed to sell all three of its feed mills and other assets to Wellsource Facilities Holding for $15.6 million. However the deal fell through when Wellsource failed to pay the agreed upon purchase price. Pennfield then put itself back on the sale block.
The two mills to be purchased by Cargill are in Mount Joy and Martinsbury, Blair Country. Cargill already has a presence in the Lancaster County. The company bought Lititz based Wilbur Chocolate in 1992 for $51 million.
The deal has still to be approved by the US Bankruptcy Court for the Eastern District. Other interested parties may still step forward with larger bids. Pennfield has requested a court hearing on January 17 to decide the issue.
Cargill decided not to purchase the third mill in South Montrose, Susquehanna County and a 165 acre farm in York County and a 3.1 acre Rohrerstown property.
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