May 1, 2008

Equity firm buys Pilgrim's Pride plant in North Carolina

Town officials in Silver City, N.C., say a private equity firm has offered to buy the local Pilgrim's Pride chicken-processing plant.

Town Manager Joel Brower told The News & Observer newspaper that Atlanta-based IIG Management Inc. wants to keep the plant's management and employees. Efforts to reach IIG representatives were unsuccessful.

Pilgrim's Pride said in a statement that its plans to close the plant in June have not changed. Company officials said several companies have expressed interest in the plant but none has made a formal offer.

According to its Web site, IIG Management plans to export the plant's products overseas. .

Pilgrim's Pride, the largest chicken processor in the US, earlier announced it would be cutting production by 5 percent, apparently feeling the impact of sharply higher feed grain prices. Rival Tyson has announced it has no plans to cut production despite posting a US$5 million loss in the second quarter.