Pilgrim's Pride Corporation announced it has signed a definitive agreement to sell its chicken complex in Farmerville, La., to Foster Farms for US$80 million, subject to a price adjustment for associated inventory and other reimbursements.

Completion of the transaction is contingent upon customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott Rodino Improvements Act and approval by the US Bankruptcy Court. The transaction is also subject to Foster Farms' receipt of US$40 million from the State of Louisiana in order to fund a portion of the purchase price. The sale is expected to be completed within 30 days.

The US Bankruptcy Court has approved procedures for the sale of the Farmerville complex assets. The sale will be completed via an auction in accordance with Section 363 of the U.S. Bankruptcy Code.

The Court set May 15, 2009, at 12:00 p.m. Central as the deadline for the submission of qualified bid packages, and scheduled an auction for May 18, 2009, at 10:00 a.m.. At that time, the company will sell its assets to Foster Farms or another qualified bidder, if such bidder makes the highest and best offer for the assets. A hearing to approve the sale has been scheduled for May 19, 2009, at 10:30 a.m. Central.

The Farmerville complex includes a processing facility, a cook plant, two hatcheries, a feed mill, a protein conversion plant and any associated inventory.

Pilgrim's Pride employs approximately 47,000 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico and Mexico. The company's primary distribution is through retailers and foodservice distributors.