Cargill has announced that it has secured the winning bid to complete the acquisition of two animal feed mills from Lancaster, Pa.-based Pennfield Corporation for US$9.8 million in a bankruptcy proceeding.
Pennfield filed voluntary Chapter 11 Bankruptcy petitions in October 2012, after 93 years in business. An initial bid by Wellsource Facilities Holding for $15.6 million fell through, when Wellsource failed to pay the agreed upon purchase price.
Under terms of the agreement, Cargill acquired Pennfield’s animal feed mills and associated assets located in Mount Joy and Martinsburg, Pa.
Cargill’s preliminary bid was filed with the bankruptcy court on Dec. 28, 2012. The judge then set a court date of Jan. 17, 2013, to allow for a simultaneous live auction of other bids received during the interim time frame and a confirmation of the ultimate bid which would provide the best combination of fit and value for the secured creditors in the bankruptcy estate.
Jennifer Horn, former director of administration and family member of Pennfield will join Cargill as administration team lead, where she will be responsible for overseeing Pennfield customer and employee communications.
The acquisition will be finalised Jan. 21, 2013, and Cargill will assume ownership.
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