Heritage Global Partners and Harry Davis & Company Offer State-of-the-Art Air Chilled Poultry Processing Site for Sale

Rhea-AI Summary

Heritage Global Partners (HGP), a subsidiary of Heritage Global Inc. (Nasdaq: HGBL), has been appointed by the U.S. Bankruptcy Court to sell a fully equipped poultry processing plant in Charles City, Iowa. This facility has undergone $30 million in upgrades and can process 140 birds per minute, with complete packaging and processing capabilities. HGP is actively soliciting offers, and if no suitable operators emerge within 60 days, a piecemeal auction will occur. The sale includes the facility, equipment, and associated intellectual property.

Positive

• The facility has undergone $30 million in upgrades, enhancing its value.
• Processing capacity of 140 birds per minute positions the facility for significant operational efficiency.
• The sale includes comprehensive assets, including real estate and intellectual property, which could attract a broader range of buyers.

Negative

• If no suitable buyer is found within 60 days, the auction may revert to a piecemeal sale, potentially reducing overall proceeds.

Heritage Global Partners (“HGP”), a worldwide leader in asset advisory and auction services, and a subsidiary of Heritage Global Inc. (Nasdaq: HGBL), announced that it has been engaged by order of the U.S. Bankruptcy Court (Case #20-00305) to offer for sale, a turnkey, state-of-the-art air chilled poultry processing plant in partnership with Harry Davis & Company, a leader in the food a beverage appraisal and equipment strategy industries. The offering is of the former Simply Essentials plant in Charles City, Iowa.

HGP and Harry Davis & Company are immediately soliciting and accepting offers for the site, which recently undertook $30 million in facility and equipment upgrades. The main line of the 500 employee processing facility has the capacity to process up to 140 birds per minute, along with a full suite of packaging, processing, and facility support equipment assets.

David Barkoff, Senior Vice President at HGP stated, “We are delighted to work on behalf of the Trustee and creditors to find a buyer for this facility. We are confident we will deliver a desired outcome for all stakeholders.”

Leonard Davis, President & CEO of Harry Davis & Company added, “We are ready and eager to use our food and beverage industry experience to help source a buyer to keep the plant operational. The facility is ready for immediate use by a vertically integrated processor looking for additional capacity to meet increased demands for air chilled poultry. We are encouraged by some initial conversations with prospective operators, but will revert to a piecemeal auction if a suitable operator doesn’t step up within 60 days. The offering includes:

• The approximately 85,000 sq. ft. facility on 3.1 acres located at 901 N. Main Street, Charles City, Iowa
• The adjacent parking lot and live barn on approximately 9.7 acres
• Real estate located at 300 Lawler Street, Charles City, Iowa
• 140 Bird Per Minute C02 Stun, Kill, Scald, Pick Line
• State-of-the-art packaging, processing, and related facility equipment
• Any trademarks, website domains, and other intellectual property

Interested parties can review the offering, schedule visits, and discuss offers with HGP and Harry Davis & Company (contact info listed below).

About HGP

Heritage Global Partners, Inc. is one of the world’s largest industrial auction firms, providing asset valuation, acquisition and disposition services a subsidiary of Heritage Global Inc. Heritage Global Inc. (NASDAQ: HGBL) is an asset services company specializing in financial and industrial asset transactions.

About Harry Davis & Company

Located in Pittsburgh, PA, Harry Davis & Company is a multi-generational auction and appraisal business that is an industry leader and international force in the food and beverage industries. Harry Davis & Company provides auction and turnkey sales, appraisals and consulting services worldwide.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005439/en/

FAQ

What is the recent press release about Heritage Global Partners (HGBL)?

Heritage Global Partners has been engaged to sell a poultry processing plant in Iowa, with a sale process initiated by the U.S. Bankruptcy Court.

What is the capacity of the poultry processing plant being sold by HGBL?

The processing plant can process up to 140 birds per minute.

How much was invested in upgrades for the poultry processing plant?

The facility has undergone $30 million in upgrades.

What will happen if a suitable buyer does not emerge for the HGBL facility?

If no suitable buyer is found within 60 days, the auction may revert to a piecemeal sale.