LIVINGSTON, Calif. -- Foster Farms has entered into a definitive asset purchase agreement with Pilgrim's Pride Corporation to acquire Pilgrim's Pride's Farmerville, La., chicken complex for $80 million.

Completion of the transaction is subject to customary closing conditions, including government approval and U.S. Bankruptcy Court approval, with an anticipated closing within 14 days.

The Farmerville complex includes a chicken processing facility, a cook plant, two hatcheries, a feed mill, and a protein conversion plant.

"Foster Farms is looking forward to expanding our operations into the State of Louisiana," said Foster Farms CEO Ron Foster. "Foster Farms anticipates upgrading and adding to the capabilities of the Farmerville complex. These enhancements, when operational and used in conjunction with the experienced local work force, will allow us to build a strong sales base, leading to a return to full double shift capacity, over time, after Foster Farms' purchase."

According to Foster, Pilgrim's Pride has committed to placing eggs in the Farmerville hatchery immediately. When hatched, these chicks will be placed in local farms owned by independent growers. Foster Farms' operation will continue to utilize the established network of experienced local growers, both to grow chicks, as well as the pullets and breeders necessary for an ongoing supply of hatching eggs. In the upcoming weeks, company representatives will be in Northeast Louisiana to meet with local growers individually. Foster Farms looks forward to restarting plant operations by Mid July, offering customers fresh locally grown chicken.

Since 1939, families have depended on Foster Farms for premium quality chicken and turkey products. Family-owned and operated, the company continues its legacy of excellence and commitment to quality established by its founders, Max and Verda Foster.

SOURCE: Foster Farms via PR Newswire.