Hormel Foods has agreed to offload its pork processing facility in Fremont, Nebraska to WholeStone Farms for an undisclosed figure.
Hormel has approved the sale as it seeks to adapt to changing dynamics in the pork industry, claiming that the sale will optimise its operations in order to maintain an efficient business structure.
As well as the sale of the plant, the deal will include an agreement which will see WholeStone Farms supply pork raw materials to Hormel Foods in the future.
According to Hormel, all employees will at the plant will retain their positions once the transition of the plant is completed.
The deal is subject to regulatory approval, though Hormel estimates the sale will be completed by the end of the year.
Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods said: “The Fremont facility has been an important part of our company for decades, and we are certainly pleased to have found a home for this team and facility with WholeStone Farms.
“The strategic decision to transition the Fremont facility to WholeStone Farms reflects the long-term, changing dynamics in the pork industry, and most importantly, is aligned with our vision as a global branded food company.”
Glenn Leitch, executive vice president of supply chain at Hormel Foods added: “We look forward to working with WholeStone Farms to ensure a smooth transition for our employees, suppliers and customers.
“A multiyear supply agreement with WholeStone Farms ensures the Fremont facility will continue as an integral part of our supply chain in the future.
“Our focus continues to be on ensuring a stronger supply chain from procurement to shipment of products, fully optimising our system to create an efficient, enterprise-wide structure to keep pace with the growing needs of our business.”
Dr. Luke Minion, chairman of the board of directors of WholeStone Farms added: “The purchase of the Fremont processing facility from Hormel Foods aligns with our vision to create and capture value in the pork supply chain for the 220 independent producers who own WholeStone Farms.
“We value the dedication and experience the existing team brings to WholeStone Farms, and are committed to significant additional investments in the facility for production efficiencies and enhancing employee wellness.”
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