West Liberty Foods acquires meat processing facilities from Quantum Foods

US-based meat processing company West Liberty Foods has acquired meat / poultry processing facilities and distribution facilities from bankrupt Quantum Foods in a $12.7m transaction.

The assets were sold as a turnkey operation, while the deal was coordinated by Tiger Group, City Capital Advisors, and Schneider Industries.

The purchase of the equipment and inventory was approved on 19 June by US Bankruptcy Judge Kevin J. Carey, sitting in the District of Delaware.

In a separate deal directed by Tiger and Schneider, but unrelated to the bankruptcy, West Liberty has agreed to acquire or lease the three Bolingbrook buildings that housed Quantum’s operations.

West Liberty Foods is planning to acquire the 220,000ft² production facility and 80,000ft² culinary facility, and has agreed to lease the 250,000ft² cold-storage distribution centre.

Over the next 12 to 14 months, the company plans to have 400 to 600 employees at the Bolingbrook sites and will re-brand the facilities under the West Liberty Foods name.

Tiger director Andy Babcock said that the successful conclusion of this turnkey sale means that hundreds of jobs will be created.

"West Liberty plans to immediately begin the process of restarting the operations at the facilities," Babcock said.

West Liberty president and CEO Ed Garrett said that West Liberty Foods’ continued growth has put the company in a position to make this acquisition.

"The Quantum facilities are well positioned to support our existing growth plans and will allow us to continue to offer the high quality, innovative, and food safe products we are known for," Garrett said.

Quantum Foods, which was established more than two decades ago, was a hand-cut beef butcher supplying commercial accounts and overseas military bases, with a workforce of 1,100.

The recent withdrawal of troops in the Middle East, along with the loss of top retail clients, affected its business operations, leading the company to file for Chapter 11 bankruptcy on February 18, 2014 in the Delaware Bankruptcy Court.