Sale of Peterson Farms finalized
Posted on Wednesday, July 23, 2008
DECATUR - The sale of Peterson Farms'broilerchicken operation to Simmons Foods of Siloam Springs is final, and the Decatur facilities began operations under Simmons Foods on Tuesday.
Simmons Foods publicly announced Monday its acquisition of Peterson Farms'broiler operation, feed mill, hatchery, processing plant, vehicles, flocks and network of contract growers.
The new purchase will give Simmons access to raw materials to match the needs of its other processing facilities and will ensure that the company can meet the demands of its expanding customer base, according to a press release from Simmons Foods.
"We are very exited about bringing the Decatur operations on stream," company chairman Mark Simmons said. "Being able to purchase and integrate existing broiler capacity located close to our northwest Arkansas further processing facilities makes this a strong strategic fit."
Operations in Decatur were shut down Monday to give the company a chance to complete the hiring process, according to Jerry Laster, senior vice president of Simmons Foods. Operations resumed Tuesday under the Simmons name.
Peterson Farms'hourly employees were allowed to begin applying for jobs with Simmons on Saturday, and the hiring process was expected to be finished Monday afternoon, he said.
Not all employees will be rehired, Laster explained, because there were some duplicate roles in the two companies.
"We purchased the assets to run the operations," Laster said of Simmons' plans for the Decatur facilities.
In a June 3 press release, Peterson Farms stated that Simmons was considered for the purchase because of its corporate values, business practices and commitments to quality and service.
"We wanted to make sure operations remain in Decatur and to preserve the majority of employee positions," Blake Evans said in a previous interview.
Evans is the CEO of Peterson Farms and the grandson of founder Lloyd Peterson.
Evans said that Simmons, like Peterson Farms, is a three-generation family business. "It's a good fit," he said.
Peterson Farms will retain the Decatur General Store and the chicken-breeder and cattle operations. The 69-year-old company was founded in 1939 as Peterson Produce and grew into a multimillion-dollar business, while giving local farmers an alternative when the produce- and orchard-based economy began to decline.
Simmons Foods is a privately held company founded in 1949. It produces value-added products for restaurants, club stores and mass merchandisers. It is also an international leader in the marketing of branded frozen chicken. The company also produces pet food, animalfeed ingredients and animal nutrition supplements.
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