US company Empire Kosher Poultry Inc., will buy the Kosher Valley poultry brand of Hain Pure Protein Corp. (HPPC) amid losses.

In a quarterly report released Wednesday (May 5), Hain said it lost nearly US$701,000 on Kosher Valley from January to March 2010.

Empire will process Kosher Valley products at its plant in Mifflintown, Pennsylvania, while Kosher Valley's plant in Plainsville, New York, according to the Post-Standard news, will shut down for at least six months.

HPPC, a joint venture between Pegasus Capital Advisors L.P. and Hain Celestial Group Inc., launched the Kosher Valley line – including chicken and turkey products – a little more than a year ago.

Hain Celestial had bought the Plainville plant from the Bitz family for US$26.3 million in 2007. Most of the Plainville facility's more than 100 workers were laid off in early 2009 when the plant was retooled to handle kosher processing of chickens and turkeys. Turkey processing under the Bitz family was transferred to a plant in New Oxford, Pennsylvania. At the time, the new owners said the shift would result in cost savings.

In the news release announcing the sale of Kosher Valley, HPPC and Empire said the combination of the two brands will provide operating efficiencies. Rabbi Yechiel Babad and the Orthodox Union will continue to provide kosher certification on the Kosher Valley line.

Under the terms of the letter of intent, Simon and Rodney Cohen of Pegasus Capital Advisors are expected to join Empire's board of directors.