U.S. agribusiness giant Cargill Inc said on Thursday it bought a former AFA Foods Inc ground beef processing plant in Fort Worth, Texas, for $14.1 million, in a move that will add to its already strong position in the U.S. and Canadian consumer market.
Based in King of Prussia, Pa., AFA filed for chapter 11 protection in the U.S. Bankruptcy Court at Wilmington, Del., on April 2. Of those assets, Cargill bid only for AFA's Fort Worth plant.
The transaction received court approval on Thursday and the sale is expected to close next week, Minneapolis-based Cargill said in a statement.
Cargill plans to keep the approximately 250 full-time ground beef production jobs at the facility and make further investments to boost the plant's competitiveness.
The Fort Worth plant will produce ground beef patties and a variety of ground beef packaged products for both the retail and food service sectors, the company said.
"This is a strategic acquisition that complements our existing beef production and distribution," said Mary Thompson, president of the Cargill Value Added Meats Food Service business headquartered in Wichita, Kansas...
Source: Argentine Beef Packers S.A.
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