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The Maschhoffs, LLC to Acquire GNP Company

Date Posted: November 22, 2013

Carlyle, IL and St. Cloud, MN—The Maschhoffs, LLC, the largest family-owned pork production company in North America, and GNP Company™, the Midwest's leading provider of premium quality chicken under the Gold'n Plump®, Just BARE® and Sunny Roost® brand labels, announced Nov. 22 they have signed a definitive agreement whereby The Maschhoffs will acquire GNP Company and its subsidiaries.

GNP Company and The Maschhoffs' pork production business will operate as separate business units following the closing of the transaction.

The transaction will have no immediate impact on GNP Company's chicken business or The Maschhoffs' pork production business.

GNP Company's headquarters will remain in St. Cloud, Minn., and its nearly 1,700 team members and 350 family farm partners will be retained.

Based in Carlyle, Ill., The Maschhoffs is owned by fifth generation family members Dave Maschhoff and his wife Karen, and Ken Maschhoff and his wife Julie.

The Maschhoffs partners with more than 450 family farmers across the Midwest to produce enough pork to feed more than 16 million consumers annually.

"No changes in business operations or company commitments are planned as a result of this acquisition," stated Mike Helgeson, GNP Company Chief Executive Officer and third-generation leader.

"GNP Company will continue to build on its reputation as the Midwest's leading provider of premium quality chicken brands and products."

Meanwhile, The Maschhoffs' pork production business unit will continue to dedicate its energies to maintaining and enhancing its position as North America's leading pork production company.

"Our intent is to manage GNP Company as a separate business unit next to our current pork production business," said Jason Logsdon, The Maschhoffs Chief Executive Officer.

"GNP Company will continue to be led by its present management team, with the support of its current team members and contract growers."

The transaction provides the capital and long-term resources that GNP Company needs to grow to meet increasing sales demand for its products and brands.

GNP Company sales are expected to be about $400 million in 2013.

"For the past year, our facilities have been running at capacity with more demand on the horizon," Helgeson said.

"By joining forces, we can leverage our core strengths, capitalize on growth opportunities, and create new value in the marketplace—thus making the combined company stronger than each would be separately," said Logsdon, adding that the transaction makes new resources available to both companies.

"This gives each business unit the opportunity to take advantage of growth opportunities that will help make us all more successful," he said.

"Over time, the companies will share best practices, leverage select strategic shared resources, and benefit from the balance sheet strength of an organization that is diversified across multiple proteins."

"Our overall goal is to continue to grow both the pork and chicken businesses while enhancing our ability to meet the needs of our valued customers and of a growing population," Logsdon said.

Helgeson added it was important to him to find a partner with like-minded values and culture as well as a strong commitment to growth.

"This is a win-win from both the business and organizational standpoints," he explained, "one that provides the critical resources for growth and secures a strong future for all of our team members and growers," he said.

The Maschhoffs and GNP Company share a deep commitment to family values, quality, market innovation and customer service excellence.

Other values the companies share are their stewardship efforts to minimize their environmental footprints; dedication to the well-being and safety of animals; and a commitment to people and the communities where they live, work and raise their families.

Additional information can be found at www.GNPCompanyNews.com.

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