Land O’Lakes and the Maschhoffs have reached an agreement for Maschhoff West LLC to purchase essentially all of LOL’s swine production assets.
The deal involves approximately 60,000 sows, related inventory and market hog production, contract production facilities in Oklahoma, Missouri, Iowa and Illinois, along with pork production facilities in Oklahoma.
“We view this as a very attractive growth opportunity,” says Ken Maschhoff, president and chief executive officer of The Maschhoff’s. “We intend to operate with the same producers and the same facilities.” The Maschhoff’s also will offer employment to the current LOL swine production division employees and will assume all current producer production agreements and feed contracts with local cooperatives.
One the transaction is completed, the Maschhoff’s will be one of the nation’s largest independent, family-owned, swine production operations in the U.S., with more than 110,000 sows. The Maschhoff’s pork production management company is headquartered in Carlyle, Ill. They currently manage more than 50,000 sows and associated market hog production in Illinois, Indiana and Iowa. The company networks with more than 150 other independent farm operations.
The deal calls for LOL to hold all current aligned system contracts, supplying them through an agreement with the Maschhoff’s. Terms of the deal weren’t disclosed, but both sides indicated the transaction should be completed by the end of this March.