Foster Farms to Acquire Fernando's and El Extremo Foodservice Brands from ConAgra Foods

ConAgra Foods and Foster Farms have agreed to a transition service agreement to manage the order entry, warehousing and delivery of Fernando's and El Extremo products and to provide sales support during the transition period.

09/06/09 Family-owned Foster Farms announces that it has reached an agreement to purchase the Fernando's and El Extremo foodservice brands from ConAgra Foods. Financial terms of the deal, expected to close next week, have not been disclosed.

The Fernando's brand is one of the original foodservice, frozen Mexican brands and dates back to 1982. With a full line of authentic Mexican entrees and appetizers ready to heat and serve, Fernando's provides food service operators with a wide selection of the latest high quality, handheld, frozen Mexican items. From hand-rolled burritos to taquitos, mini-tacos and enchiladas, Fernando's products offer high-quality, convenient options for foodservice operators offering premium Mexican menu items to their customers. El Extremo is also a foodservice, frozen Mexican brand and serves the school-lunch program distribution channel.

"This acquisition is a strategic fit for Foster Farms," said Ron Foster, Foster Farms' President and CEO, "and will give us capabilities to expand our current businesses in the foodservice, retail, and C-Store Channels."

A manufacturing facility in Compton, California was included in the sale. The plant is used exclusively to produce handheld Mexican products under the Fernando's and El Extremo labels and will remain operational.

ConAgra Foods and Foster Farms have agreed to a transition service agreement to manage the order entry, warehousing and delivery of Fernando's and El Extremo products and to provide sales support during the transition period. "Our shared goal is for this transition to be as seamless as possible for customers and they will continue to receive uninterrupted service," said Foster.