Mountaire Farms plans to buy three grain elevators on the Eastern Shore of Maryland from Nagel Farm Service, the chicken producer said Friday.
The grain facilities, located in Preston, Cordova and Wye Mills, are key locations for farmers on the Mid-Shore.
Nagel Farm Service will retain their trucking, hardware and crop insurance businesses.
“Our intention is to operate these facilities with the same level of exceptional service that local farmers have come to expect from Nagel Farms,” said Rex Holstein, Mountaire’s vice president of agri-business.
Both companies are family-owned and share similar values, he said.
“We appreciate how they’ve managed their business,” he said.
The Nagel family said that Mountaire and their farm service were a good business fit.
“We both operate from two critical principles: 1) prioritizing faith and 2) providing exceptional service to the farmer,” the family statement said.
The Nagels plan to continue serving the farm community with the same level of care they had for nearly 80 years, they said.
“We are proud of the strong bond we have with our loyal customers and look forward to improving these relationships through unparalleled service,” the statement said.
The two companies signed a letter of agreement, and, subject to due diligence, Mountaire will finalize the purchase in coming weeks and then work with employees to transition their employment, benefits and seniority to Mountaire.
Mountaire already owns nine grain elevators on Delmarva and three feed mills.
By Betsy Price