The Mashhoffs, North America’s largest family-owned pork production company, announced Friday its purchase of GNP Company, the Midwest’s leading provider of premium quality chicken.
GNP Company sells its products under the Gold’n Plump, Just Bare and Sunny Roost brand labels.
According to a joint press release, the transaction provides the capital and long-term resources that GNP Company needs to grow to meet increasing sales demand for its products and brands.
"For the past year, our facilities have been running at capacity with more demand on the horizon," Mike Helgeson, GNP Company Chief Executive Officer and third-generation leader, 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," he said. "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," Logsdon added.
The transaction will have no immediate impact on GNP Company's chicken business or The Maschhoffs' pork production business, and both businesses will operate as separate business units following the closing of the transaction. Read the release here.
According to the St. Cloud (Minn.) Times, the sale is expected to close in 30 days. Financial terms of the agreement were not disclosed.
“I think family businesses tend to be more private,” Julie Maschhoff said. “Both families are committed to ensuring a smooth transition. And I think what’s really is important is this doesn’t mean change. It’s going to be business as usual going forward. That (GNP) management structure has worked for years and it’s not going anywhere. We’re going to stay focused on pigs down here and GNP is going to stay focused on chickens up there.”
The Minneapolis (Minn.) Star Tribune repots that GNP Company is the 18-largest U.S. chicken producer with $400 million in annual sales. It also is one of the few producers outside of the southern states, the country’s main chicken-raising region.