July 16, 2012

AFA Foods sells plants to Cargill and FPL Food

AFA Foods has gained legal approval for the sales of three US-based company facilities, as part of its bankruptcy proceedings.

Cargill bought a ground beef processing plant in Fort Worth, Texas, for US$14.1 million and expects to keep the roughly 250 ground beef processing positions associated with the facility. The plant will produce patties and other packaged ground beef products for retail and foodservice. The deal is expected to close next week, Cargill said in a news release.

FPL Food will buy AFA's Thomasville, Georgia, facility for US$7.3 million, and Tri West Investments will buy AFA's Los Angeles plant for US$4.4 million, according to media reports.

The AFA Foods website lists a total of seven plants, including these three and facilities in King of Prussia, Pennsylvania; Ashville, New York; and additional plants in Forth Worth and Los Angeles. AFA Foods filed for Chapter 11 bankruptcy protection following the media scrutiny of lean finely textured beef.

The law firm representing AFA Foods did not immediately respond to a request for further information.