Land O'Lakes Inc. and The Maschhoffs Inc. announced an agreement for Maschhoff West LLC to purchase substantially all of Land O'Lakes' swine production assets. Terms of the agreement were not disclosed, but officials of the two organizations indicated they anticipate the transaction will be completed by the end of the first quarter 2005.

The transaction involves approximately 60,000 sows, associated inventory, related market hog production, and contract production facilities in Oklahoma, Missouri, Iowa and Illinois, along with swine production facilities in Oklahoma.

"We are pleased to have found a buyer for our swine business with more than a century of swine production experience, a solid reputation and history of success, financial strength and long-term commitment to the swine industry," Land O'Lakes President and CEO Jack Gherty said. "The fact that our two organizations have similar values and operating philosophies should make this a smooth transition for producers and employees.

Once the transaction is complete, Maschhoffs will be one of the nation's largest, independent, family-owned swine production operations, with more than 110,000 sows.

"We intend to operate with the same producers and the same facilities," Maschhoff said. "We also intend to offer employment to the current Land O'Lakes Swine Production Division employees and we will assume all current producer production agreements and current feed contracts with local cooperatives."

Source: PR Newswire