Perdue Farms said this week it plans to increase the size and reach of Niman Ranch, a growing supplier of naturally raised meat to the restaurant industry, following its acquisition of parent company Natural Food Holdings.
Perdue announced the deal to buy Natural Food Holdings on Tuesday from the private-equity firm LNK Partners. Terms of the deal were not disclosed.
The deal, however, gives Perdue an important supplier of naturally raised proteins amid growing consumer demand for specialty meat. Niman Ranch started selling pork to Chipotle Mexican Grill in 2001.
Executives said they plan to increase the number of farmers in the Niman Ranch network, while expanding distribution of its products to more cities around the country.
Niman Ranch was founded in California the early 1970s by Bill Niman, a former teacher from Minnesota. The company has since grown into a network of more than 700 family farmers and ranchers spread across the country.
“We are excited to become part of Perdue,” Jeff Swain, Natural Food Holdings CEO, said in a statement. “With Perdue being a family-owned business and the Perdue commitment to responsible food and agriculture, it was the perfect fit to help us continue to grow and prosper while staying true to our brand’s mission.”
Niman Ranch provides pork, beef, lamb, cage-free eggs and smoked and cured meats.
Chipotle relied on Niman Ranch for a bigger supply of fresh pork after the restaurant cut ties with a supplier that failed to meet the company’s animal welfare standards.
A Chipotle spokesman did not respond to a request for comment on the acquisition.
The acquisition is also an acknowledgement of food business reality. Consumers are demanding specialty meat raised with stricter animal welfare standards, forcing restaurant chains and food suppliers to meet that demand.
Perdue has been working toward that end. Earlier this year, the Salisbury, Md.-based company said it would eliminate the use of antibiotics in its poultry, for instance.
“This represents the next chapter in our growth through premium proteins and trusted brands,” Perdue Farms chairman Jim Perdue said in a statement. “The Niman Ranch brand continues our commitment to raising animals without antibiotics or artificial growth stimulants, and to responsible food and agriculture.”
Terms of the deal were not disclosed, but Perdue and LNK Partners have signed a definitive agreement that should close “soon.”
The acquisition of Niman Ranch gives Perdue a big, national player in the natural meat industry. “With the long, family-owned heritage of our company, we understand and respect what Niman Ranch represents,” Perdue said. “All Niman Ranch livestock will continue to be raised by the same small family farmers and ranchers, following the same protocols, and with the same focus on sustainability.”
LNK Partners invested in Niman Ranch in 2011. Bill Niman himself left the company in 2007.
The deal also gives Perdue the Prairie Grove brand and the SiouxPreme packing plants in Sioux City and Sioux Center, Iowa.
“This is more than adding volume and capacity,” Randy Day, president of Perdue Foods, said in a statement. “This acquisition is an important step forward in growing our pork business through premium brands with high standards for animal welfare and sustainable agricultural practices.”
Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze