PITTSBURG, Texas -- Pilgrim's Pride Corporation has agreed to sell its chicken complex in Farmerville, La., to Foster Farms for $80 million. The transaction is subject to the parties entering into a purchase agreement, as well as the expiration or termination of the waiting period under the Hart-Scott Rodino Improvements Act and approval by the U.S. Bankruptcy Court. The company expects the transaction would be completed within 30 days from signing the purchase agreement.



The Farmerville operations include a processing facility, cook plant, hatchery, feed mill, protein conversion plant and any associated inventory.



"Consistent with what we have said from the beginning, we would consider selling the complex if we received a meaningful offer reflective of the value for these assets," said Don Jackson, president and chief executive officer. "We believe this sale at this price is in the best interests of all parties involved, including our employees, growers, the Farmerville community, and our creditors. We appreciate the support and efforts of Louisiana Governor Bobby Jindal and his staff working to bring this process to a satisfactory conclusion for everyone involved."



As previously announced, the Company and certain subsidiaries filed voluntary Chapter 11 petitions on December 1, 2008. The Chapter 11 cases are being jointly administered under case number 08-45664. The Company's operations in Mexico and certain operations in the United States were not included in the filing and continue to operate as usual outside of the Chapter 11 process.



Pilgrim's Pride Corporation employs approximately 47,000 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors.



SOURCE: Pilgrim's Pride Corporation via PR Newswire.