July 12, 2005

American Foods and Rosen's to merge
 

American Foods Group Inc. and Rosen's Diversified Inc. announced in US last month a merger agreement for their meat and transport components

The merger will combine American Foods, the 10th largest beef packer in the US, and Rosen's, the sixth largest, to become American Foods Group LLC.

This merger is expected to cause a major consolidation in the US beef-packing sector.

The purpose of the merger is to build economies of scale rather than to reduce the impact of the US border's extended closure to Canadian cattle, a spokesperson and other sources said. No processing plants, however, will be closed in the merger.

There is no indication if the deal is an acquisition by one party or a straight partnership and no other details on the merger were announced.

Wisconsin-based American Foods produces fresh and frozen meat, and other products such as ground beef, bacon, sausage, and even cooked products for the food service and retail sectors.

Minnesota-based Rosen's produces fresh and frozen meat, meat snacks and pet treats. Rosen's agriculture chemical and fertilizer businesses, however, are not part of the merger, according to the announcement.

The merger should be finalised by late August. Last year, combined sales from both American and Rosen's exceeded US$1.5 billion.