Cargill Signs Agreement to Purchase Mountaire’s Feed Milling and Animal Health Business

09/01/07 Cargill Animal Nutrition has signed a purchase agreement with Mountaire Feeds, Inc. to purchase certain assets of Mountaire’s feed milling and animal health business, including its Prime Quality feed brand. It is anticipated that the sale will be finalized early this month.

According to officials from both companies, the deal will enable Cargill to combine its nutritional technology and management systems with the Prime Quality brand’s strong customer base and market presence.

“Cargill is committed to the growth of its animal nutrition business, and we see great opportunity in the Mid-South marketplace,” stated Tom Taylor, general manager of Cargill’s Kansas City animal nutrition business, which will now include the Prime Quality brand. “The Prime Quality brand strategically fits with our goals, particularly in the distribution of farm-store products. It is a well-recognized brand that has been developed over the years. Cargill is committed to continuing the relationship with Prime Quality dealers and their customers, building upon its rich brand value while applying our research and development expertise to lead us into the future. The Prime Quality brand provides a complement of talented people, strong brands and geographic distribution to support our growth objective.”

“Prime Quality Feeds has strived to provide good quality and service at fair prices to all of our customers for over 92 years,” said Ronald Cameron, chairman, Mountaire Corporation. “This transition will allow our customers to continue to be served with Prime Quality products for many years to come. We will work hard to make this a seamless transition for all concerned.”