Oregon has many businesses that deal in some aspect of food manufacturing and/or processing. A lot of activity in business law involves the purchase and sale of businesses in the food growing and processing industries. An established food manufacturer may desire to add a certain specialty line of products to its brand or it may need to increase its production values by acquiring a business that can engage in a manufacturing procedure not yet available to the buyer.
An example is the recent acquisition of the soybean processing facility owned by CHS, Inc. The purchaser, ZFS Creston L.L.C., is a subsidiary of Zeeland Farm Services, Inc. The purchaser will use the facility to make soybean products for specialty markets. The process of locating and buying such a business by a large manufacturer can be arduous due to the variety of businesses that deal in some form or another with at least part of the activities of CHS, Inc.
When a purchaser locates the right fit for its business, it still must do its due diligence in discovering the details of the business, its capabilities, financial statistics and what investments may be yet needed to get the operation up to industry standards. In this case, the CHS facility located in Iowa was closed in Dec. 2017, leading to the loss of 53 jobs. The new buyer may now give new life to those former employees with its plans for revamping and upscaling the operation.
ZFS announced that it was looking forward to recovering jobs, increasing soybean opportunities in the surrounding areas and producing its line of soybean specialty products for its customers. Zeeland Farm Services is a complex of business entities that engage in soybean processing, feed ingredients, oil refineries, biofuels, grain storage and other enterprises. Business law attorneys in Oregon play an integral role in bringing transactions like this one to successful fruition and putting the legal framework in place so that there is a smooth and timely transition to legal operating status.
Source: bakingbusiness.com, “ZFS Creston to buy soybean processing plant”, Eric Schroeder, April 3, 2018