Pennfield Corp. plans mill sale to Cargill Inc.
Distressed Lancaster County-based livestock feed company Pennfield Corp. plans to sell two of its three mills to Cargill Inc., according to court documents.
Cargill would pay $8.5 million, less certain adjustments, for Pennfield’s Mount Joy mill in Lancaster County and Martinsburg mill in Blair County, according to a sales agreement filed Dec. 28 in U.S. Bankruptcy Court for the Eastern District of Pennsylvania.
Pennfield’s South Montrose mill in Susquehanna County is excluded from the deal. The sales agreement and related court filings do not say why. Messages left with Pennfield and Cargill this morning seeking additional information were not immediately returned.
Pennfield is requesting a Jan. 17 hearing on the proposed sale.
Based in Minnetonka, Minn., Cargill is ranked by Forbes magazine as America’s largest privately held company. It employs 142,000 people in 65 countries, according to its website; among its holdings is Wilbur Chocolate, based in Lititz.
Pennfield filed for bankruptcy protection in October, intending to sell its assets to Wellsource Nutrition, a subsidiary of a startup company called Carlisle Advisors. The deal was approved, but in December, Pennfield notified the bankruptcy court that Wellsource had not followed through with payment and that Pennfield would explore other options.