July 12, 2012
Cargill today announced it is the successful bidder for the former AFA Foods, Inc. ground beef processing plant in Fort Worth, Texas, resulting from a federal bankruptcy court auction, with a bid of $14.1 million for the facility, plus the purchase of all working capital assets. AFA filed for chapter 11 protection in U.S. Bankruptcy Court on April 2, 2012. Cargill bid only on AFA’s Fort Worth plant. The transaction also received court approval today and the sale is expected to close next week.
Cargill plans to retain the approximately 250 fulltime ground beef production positions at the facility and invest appropriately there to ensure the plant’s ongoing competitive viability. The Cargill Value Added Meats Food Service unit of Minneapolis-based Cargill, Inc. services customers throughout the U.S. and Canada. Its Fort Worth plant will produce ground beef patties and a variety of ground beef packaged products for both the retail and foodservice sectors.
Over the past 15 months Cargill has announced approximately $100 million of investments in Texas supporting the company’s animal protein businesses, including the acquisition of a hog production facility near Dalhart, construction of a livestock feed production facility at Bovina and the Fort Worth beef processing facility acquisition. These projects will add hundreds of jobs, elevating Cargill’s total employment in the state to more than 6,000 at three dozen locations throughout Texas. Additionally, for fiscal 2012 and 2013 Cargill committed a total of $20 million in capital investments at its Plainview and Friona, Texas, beef processing facilities.