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S Korean Firm Buys US Poultry Producer

by 5m Editor
29 July 2011, at 8:35am

SOUTH KOREA - Harim Co., a South Korean food company, has taken over a US chicken company in a bid to expand its global market presence.

Harim said its US unit, Harim USA, got approval from a bankruptcy court in Delaware on 27 July after winning the right at an auction earlier this week to buy Allen Family Food Inc.

Yonhap reports that the Delaware-based company filed for bankruptcy protection last month following a severe downturn in the US poultry industry.

Harim said it will take control of a 43 per cent stake in the company. The company estimated that it costs a total of US$120 million to take over the US firm's plants and farms.

Allen Family Food, established in 1919, reported sales reaching $400 million last year. Harim said the take-over will help it expand its presence in overseas meat markets.

Harim, which is engaged in a diverse range of food processing areas as well as the poultry business, reported a net profit of 23.2 billion won (KRW) on sales of KRW163 billion in the first quarter of this year.

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