Friona Industries, L.P. has entered into an agreement to acquire all of the cattle feeding assets of Cargill located in the Texas Panhandle. Included in the intended purchase will be two large commercial feedyards located in Dalhart, Texas and Bovina,Texas. The facilities, with one-time capacity of 140,000 head,will increase Friona’s cattle feeding operation byapproximately50%, and will continue to strengthen its on-going cattle supply agreement with Cargill Meat Solutions. Final terms of the agreement will be consummated upon completion of definitive agreements and any required regulatory reviews.
“This acquisition is one more step in our journey to create the nation’s first commercially viable, vertically aligned, process verified cattle production operation directed into a series of branded beef products. We intend to continue to increase our delivery of the most consistent, safe, and tender beef products to Cargill’s domestic and global customers” said Brad Stout, Chief Executive Officer of Friona.
Friona Industries, L.P. was founded in 1962, andis the third largest commercial cattle feeding company in the world. The Company currently provides 700,000 cattle per year to Cargill’s Friona, Texas packing facility. All current employees of Cargill’s purchased feedyards will be offered positions with Friona.