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#5 U.S. Meatpacker American Foods Group Bids for Northern Beef Packers

Bankrupt Northern Beef Packers of Aberdeen goes up for auction right after lunch today at the federal courthouse in Sioux Falls. In a market dominated by four big companies, guess who the first bidder is? Number Five:

American Foods Group, of Green Bay, Wisc., has been approved as a qualified bidder and has submitted a $12.75 million bid on the plant, according to paperwork filed this morning in the bankruptcy case. The bid meets the minimum bid set earlier in the case.

American Foods' meat products include Yankton-based Cimpl as well as Dakota Premium Foods, Northland Kosher, Gibbon Packing, Green Bay Dressed Beef, Long Prairie Packing and Skylark Meats [Scott Waltman, "Green Bay 'Packer' Submits $12.75M Bid for Beef Plant," Aberdeen American News, 2013.12.04 ].

From the packers' website:

American Foods Group provides wholesome, on-time delivery of the freshest beef from America’s heartland. We are the 5th largest beef processing company in the country, ship over four million pounds of beef a day, have developed our own brands and export to over 38 countries [American Foods Group, company website, downloaded 2013.12.05].

With four hours to go until bid time, American Foods Group is the only challenger to California financier White Oak Global in the bankruptcy sale.

In the Long-Blog-Reach-for-Connections Department, Governor Dennis Daugaard has named Aberdeen attorney Rick Sommers to replace retiring Fifth Circuit Judge Jack Von Wald. Sommers has lawyered for Bantz, Gosch, & Cremer, LLC, since 1989. One of his partners in the firm is Rory King, attorney for Northern Beef Packers.

17 Comments

  1. rollin potter 2013.12.05

    sounds real cozy!!! MR.Deaugard, Judge Sommers, judge sommers law partner mr.king, and northen beef packers attorney mr. king!!!!!!!!!!

  2. Jim 2013.12.05

    Wait a sec...ric simmers is a stand up guy...my guess is he's disgusted with this whole thing as the rest of us.

  3. Charlie Johnson 2013.12.05

    On the surface, number 5(American Foods) appears to be a good fit-more so than the big 4. ?--I have, "Why wasn't this company approach in the first place to build and own this plant?" They appear to have various brands which they own and operate. "South Dakota Beef" would seem to fit into their mixture of beef brands.

  4. Roger Cornelius 2013.12.05

    How much GOED/EB-5 funding will this require?

    Well now we know why Daugaard is dropping the $30 million of the $70 million windfall into GOED.

  5. Bree S. 2013.12.05

    I'm really glad they got a bid. A company like that, that knows what they're doing, should be able to quickly increase production and get people back to work before the next down cycle. This is great news for Aberdeen.

  6. Elizabeth 2013.12.05

    I think rick simmers is a stand up guy

  7. Jim 2013.12.05

    Sommers, sorry bout the auto correct.

  8. Jim 2013.12.05

    ...Charlie, it would probably be a good question for mike as to why we didn't partner with someone established in the industry that actually knew what they were doing.

  9. caheidelberger Post author | 2013.12.05

    Following up, thanks to Scott Waltman's Tweets:

    White Oak Global has bought Northern Beef Packers. American Foods Group made the minimum $12.75M bid; White Oak bid $44.35M:

    —$39.5M credit;
    —$3.31M to pay the lien to Olson Digging;
    —$1.04M on Brown County taxes owed;
    —$100K to committee;
    —$400K in fees to Lincoln financiers.

  10. caheidelberger Post author | 2013.12.05

    Waltman says Rory King says White Oak may reopen the plant, then market it for resale. King also says White Oak will pay NBP's workers.

  11. caheidelberger Post author | 2013.12.05

    Dirk Lammers reports that AFG offered $12.75M in cash. White Oak refused to put more cash up than the amounts it is offering for the lien, taxes, and fees. So really, AFG put up a more solid offer right here right now, cash on the barrelhead.

  12. Bree S. 2013.12.05

    I don't see this going well.

  13. interested party 2013.12.05

    sounds just like you, bree.

  14. Deb Geelsdottir 2013.12.05

    I'm with Bree. I got a baaaaaaad feelin bout this.

  15. Les 2013.12.05

    So let me get this straight. White Oak loaned 35mil to NBP of which 32Mil was then used to purchase a shell company sending that money offshore. Now White Oak who is possibly up to their hips in this gets NBP and Epoch Star for under 4Mil. Didn't the Green Bay Packer bid of 12Mil still carry some of the liability of the fees, credit and taxes etc?
    .
    White Oak getting this bid, where's Epoch Star as the guarantor of the auction loan and how about a good ol Claw Back of those 32Mil to purchase the shill Epoch Star, Judge Nail? How about those 32Mil, who gets that money your Honor?
    .
    Good luck Aberdeen Developement Corp!

  16. Jerry 2013.12.05

    Its good to be the king.

  17. Jerry 2013.12.05

    What a comedy with South Dakota taxpayers as the scapegoats for the money changers. The losses are staggering for this plant and we are not done with it as now our benevolent Denny will toss in another infusion with the windfall money. All of which will go to buy power. Hilarious

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