990867 IBP Completes Acquisition of Thorn Apple ValleyAugust 28, 1999Dakota Dunes, SD - IBP, inc. completed the acquisition of Thorn Apple Valley, a Michigan based meat processing company. IBP officials in June entered into a letter of intent to buy TAV, which filed for bankruptcy earlier this year. A federal bankruptcy judge approved and confirmed plans for the transaction in July. Effective immediately, TAV will be operated as a subsidiary of IBP. “Thorn Apple Valley is the latest step in our further efforts aimed at a more manufactured, higher margin product mix,” according to Robert L. Peterson, IBP chairman and chief executive officer. “This acquisition is a great complement to our other value-added businesses. Already we have begun the process and started the investment to move beyond the challenges of the past. Specific initiatives to improve product quality, to ensure product safety, and to achieve state-of-the-art manufacturing are underway. We are firmly committed to TAV's customers.” In the transaction, IBP purchased certain assets of TAV for $117.5 million in cash and assumption of debt. With inventory and receivables valued at $50 million, IBP's investment in brand names, trademarks and fixed assets is approximately $67.5 million. Operating facilities included in the purchase are further processing plants in Ponca City, Oklahoma; Forrest City, Arkansas; Holly Ridge, North Carolina, Grand Rapids, Michigan and Detroit, Michigan. Thorn Apple Valley produces bacon, hot dogs, lunch meats, hams and sausage and manages national brand names such as Thorn Apple Valley(r), Corn King(r), Colonial(r), Wilson Certified(r) and Cavanaugh Lake View Farms(r).
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