USA: Meat processors merge
Rosen's Diversified Inc and meat processor American Foods Group Inc have agreed to merge RDI subsidiary Rosen Meat Group with American Foods Group.
The new company, to be called American Foods Group and headquartered in Alexandria, Minnesota, will consist of all of American Foods Group Inc current operations, along with RDI's meat processing companies.
RDI's agricultural chemical distribution and fertilizer business units are not part of the agreement. The parties expect the merger to close by late August, following due diligence by the companies. Combined total sales for the two companies last year were over $1.5bn. Terms of the agreement were not announced.
Tom Rosen, CEO of RDI, and Carl Kuehne, CEO and owner of American Foods Group, will serve as co-chairmen and co-chief executive officers of the new company, along with Greg Benedict, chief operating officer and Robert Hovde, chief financial officer.
"It makes perfect sense to combine our companies," said Rosen. "We share the same management philosophies in caring for our employees and customers. We complement each other's businesses very well and this transaction will clearly strengthen our ability to remain competitive in the meat industry."
"This merger is all about opportunity and growth," added Kuehne. "Together as one company we can offer a wider variety of products and services to our customers and provide more growth opportunity for our employees and their communities."
Both Rosen and Kuehne have said that job loss is not anticipated and have stated that, "The creation of this new company will strengthen our operations and should help us create more jobs through growth."
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