Source:  Ann Bagel Storck, MEATINGPLACE.COM, 6/9/09

Livingston, Calif.-based poultry company Foster Farms announced it has reached an agreement to purchase the Fernando's and El Extremo foodservice brands from Omaha, Neb.-based ConAgra Foods. Financial terms of the deal, expected to close next week, were not disclosed.

The Fernando's brand features a full line of frozen, heat-and-serve Mexican entrees and appetizers for the foodservice industry, including burritos, taquitos, mini-tacos and enchiladas. El Extremo also is comprised of frozen Mexican products and serves the school lunch program distribution channel.

A manufacturing facility in Compton, Calif., 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.

"This acquisition is a strategic fit for Foster Farms," said Ron Foster, Foster Farms' president and CEO. "[It] will give us capabilities to expand our current businesses in the foodservice, retail and c-store channels."

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