MGPI sells business to Sergeant's Pet Care Products
August 24, 2009
by Eric Schroeder
ATCHISON, KAS. — MGP Ingredients, Inc. on Aug. 21 sold its Kansas City, Kas., facility to Sergeant’s Pet Care Products, Inc. for $3.6 million. While the sale includes all equipment used for the production and packaging of pet-related products, it does not include equipment used in the production of MGPI’s Wheatex textured wheat proteins, which are used in meat extension and vegetarian product applications. MGPI said the Wheatex equipment will continue to turn out product in a separate section of the facility under a toll manufacturing arrangement between MGPI and Sergeant’s.
"The divestiture of this facility along with assets related to the manufacture of pet products is a key step in our business transformation process," said Tim Newkirk, president and chief executive officer at MGPI. "It supports our strategy to place increased focus on those core areas of our business where we possess the greatest amount of expertise and can deliver the greatest amount of value to the categories we serve."