Cargill beefs up capabilities, commitment to protein, with South Carolina plant purchase
Location, established beef processing business, supply synergies, complement existing operations to better serve customers
Location, established beef processing business, supply synergies, complement existing operations to better serve customers
COLUMBIA, S.C. and WICHITA, Kan., March 4, 2016 /PRNewswire/ -- People in the eastern United States love good beef burgers and beginning this spring Cargill will be able to better meet those needs through the acquisition of the FPL Food, LLC ground beef processing plant in Columbia, S.C. Purchase of the 100,000-square-foot plant, which employs more than 200 people, complements Cargill's meat processing facilities in Georgia and Pennsylvania. The acquisition enhances the company's ability to serve eastern retail and foodservice customers. Terms of the purchase were not disclosed, and the transaction is expected to close around the end of March.
"Cargill ground beef customers served by this plant will benefit from closer proximity to supplies and improved transit time for their orders," said John Keating, president of Wichita-based Cargill Beef. "We are acquiring an excellent facility, with outstanding people and capabilities. This acquisition underscores our ongoing commitment to grow our protein business and will enable us to better serve retail and foodservice customers in a region where people love ground beef."
"As the founder of FPL Food, I am delighted our ground beef plant will be in the hands of a company that truly values the products and people who produce them, as well as the customer relationships that nurture a continuous drive for excellence to generate profitable business growth," said Francois Paul Léger. "We're looking forward to the opportunity to remain a key supplier of quality beef to the plant and know that the fine people working there will become part of Cargill's terrific beef team. This sale allows FPL Food to focus on its core business of raising and harvesting cattle. It is a win-win scenario for ground beef customers, plant employees, the community, FPL Food and Cargill."
Cargill's North American beef business is one of the largest producers of ground beef products in the world, with numerous processing plants in the U.S. and Canada. Ground beef is versatile and used for dishes ranging from premium gourmet hamburgers to an ingredient in chili and meat sauces, taco filling, meatballs, meatloaf and many other recipes.
"Ground beef is a staple in the diet of most U.S. consumers and we've recently seen encouraging trends, including a resurgence for premium gourmet burgers," stated Keating. "Rebuilding the U.S. beef cattle herd from the severe multiyear drought suffered in Texas and the southern plains is well underway, which will result in an increased beef supply later this year and beyond. The increased supply should benefit our customers and consumers over the next few years.
"Forecasts tell us global beef demand continues to increase significantly, and U.S. demand is solid. Given the needs of our customers, purchasing this facility in South Carolina will help us expand our capabilities, including better utilization of the beef we generate at our other plants. Synergies make this acquisition very attractive to our beef business."
For more information about Cargill's ground beef and burgers visit: www.cargillgroundbeef.com or www.burgercravings.com.
About Cargill
Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and 150 years of experience. We have 150,000 employees in 70 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. For more information, visit Cargill.com and our News Center.
About FPL Food, LLC
FPL Food, LLC is the largest privately-owned processor of fresh beef and ground beef products in the Southeast. Through the commitment of more than 600 employees across two facilities and a farm, the company offers several brands to retail and foodservice customers. Whether delivering beef products domestically or exporting worldwide, FPL Food is dedicated to providing traditional and custom quality meat items to satisfy the needs of each of their customers. For more information, visit www.FPLFood.net.
Logo - http://photos.prnewswire.com/prnh/20150701/227604LOGO
SOURCE Cargill
Share this article