National Beef to buy Prime Tanning wet blue facility
02/03/2009
Packing company National Beef has announced that its wholly-owned subsidiary National Beef Leathers has entered into an agreement “to acquire certain assets and assume certain liabilities” of Prime Tanning Corp.
National Beef explained that the deal means it will take over the wet blue part of the tanner, based in St Joseph, Missouri.
The transaction is subject to certain closing conditions including the satisfactory completion of due diligence. The acquisition price was not disclosed.
The St Joseph facility will process hides from National Beef’s own processing facilities. “The Prime facility is ISO 9001/14001/18001 certified and has achieved a Silver rating for environmental excellence from the BLC Leather Technology Centre,” said Robert Hein, Senior Vice President and General Manager of National Beef Leather. “This is an exciting opportunity for us to pursue quality leather customers while guaranteeing a premium wet blue product and a predictable supply. We look forward to joining the St Joseph business community.”
The chief executive of National Beef, John Miller, commented: “This acquisition allows National Beef to expand our value-based marketing strategy into the wet blue hide business. The bovine hide business has traditionally been commodity-driven; owning a wet blue tannery will allow us to add significant value to the hides that we produce in our beef-processing facilities.”
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