Pipasa Becomes Part of Cargill in Central America

MINNEAPOLIS, June 2, 2011 /PRNewswire/ -- Cargill in Central America announced today that it has combined its operations with Corporacion Pipasa, which is a leading poultry and meat processor in Costa Rica and Nicaragua and is now a part of Cargill.  Terms of the transaction were not disclosed.  All regulatory approvals have been completed.

Pipasa produces beef, pork, chicken and turkey products in Costa Rica and Nicaragua. The company has five processing plants, four animal feed facilities and 12 distribution centers. Pipasa also is a leader in the region in feed for cattle, aquaculture, poultry, pork, horses and household pets. Its key brands are Pipasa for poultry, Tiquicia for cold cuts, and As Can for pet food.

The combination with Pipasa will be an important addition to Cargill's existing retail-branded business in Central America that processes and distributes chilled and frozen poultry and luncheon meats to large and small food retailers throughout Central America. Cargill also distributes processed cheeses and French fries.

Cargill processes poultry in Honduras and Nicaragua, and has processed-meat operations in Costa Rica, Guatemala and Honduras. Cargill's recognized local brands include: Pollo Norteno and Delicia in Honduras; Tip Top, Delicia and Cinta Azul and Cainsa in Nicaragua; Perry and Premier in Guatemala, and Cinta Azul in Costa Rica.

"Cargill has been involved in the poultry business in Central America for more than 45 years," said Bruce Burdett, the leader of Cargill's operations in Central America. "The combination of Cargill and Pipasa will create a business that will help meet the increased demand for high-quality food in Central America."

The long-term outlook for poultry, poultry feed and processed meats is strong, Burdett said.  As incomes rise in Central America, more people will add more chicken and processed meats to their diets.    

Combining Pipasa and Cargill's presence in Central America shows Cargill's commitment to be a leading food provider in the region and will provide additional value to customers, employees and the communities in which they work, Burdett said.

Burdett said combining the businesses of Pipasa and Cargill was an attractive idea because of Pipasa's strong brands, built on the reputation of Pipasa's people, the quality of Pipasa's products and the excellence of its operations.

Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services.  Founded in 1865, the privately held company employs 131,000 people in 66 countries.  Cargill helps customers succeed through collaboration and innovation, and is committed to applying its global knowledge and experience to help meet economic, environmental and social challenges wherever it does business.  For more information, visit www.cargill.com.

SOURCE Cargill