Agway Sells Feed Business to Cargill
SYRACUSE, N.Y. (AP) _ Agway Inc. has tentatively agreed to sell its feed and nutrition business to Cargill Animal Nutrition for $10 million.
The sale must be approved by U.S. Bankruptcy Court, which is overseeing the agricultural cooperative’s Chapter 11 reorganization.
Agway chief executive Michael Hopsicker said Agway will file a motion requesting the bankruptcy court establish bidding procedures and set a date for an auction to determine if there are higher or better offers for Agway Feed and Nutrition.
Agway expects to complete the deal in March, he said.
The agreement excludes Cooperative Milling LLC, a joint venture between Agway and Southern States Cooperative, Hopsicker said.
Cargill Animal Nutrition, a global leader in animal feed and technology, employs about 9,000 people worldwide and operates in 23 countries. It is part of Minneapolis-based Cargill Inc., which markets, processes and distributes agricultural, food, financial and industrial products and employs 98,000 people worldwide.
Th nutrition and feed business is the last big piece of Agway to be sold.
The cooperative, which is owned by 69,000 Northeast farmers, filed for bankruptcy protection Oct. 1, 2002, and has since sold nearly all of its divisions to raise money for its creditors.