The Wenger Group Inc., John J. Hoober Inc., doing business as Hoober Feeds, and L&K Mills Inc. jointly announced May 14 that they have reached an agreement in principle with respect to a proposed business arrangement among the companies.
Under the proposed arrangement, Wenger Feeds LLC, a subsidiary of The Wenger Group, will make an investment in the Hoober Feeds business and will acquire certain assets related to the mill operation of L&K Mills.
This transaction will provide Wenger with an entry into the dairy feed segment under the Hoober Feeds brand, enable it to expand its milling capacity with the addition of the L&K Mill and add talented leaders to its management team.
Announcing the deal were Phil Rohrbaugh, chief executive officer of The Wenger Group, and Brad Wagner, president of John J. Hoober. Both indicated that they are excited about this new business relationship and the growth opportunity expected by combining the size and scale of Wenger with the strong Hoober Feeds brand in the dairy industry.
The consummation of these transactions is subject to completion of due diligence and the execution of agreements between the parties. It is anticipated that the transactions will be completed within the next 30 days.
Although Hoober Feeds will continue to operate as a separate company from Wenger in serving its current customer base and there will be no changes in how its customers are served, Hoober will be able to draw upon the larger Wenger organization to gain certain economies of scale and specialized expertise.
In connection with the transaction, Wagner and Tom Nauman will join the Wenger management team. While Nauman will continue his management focus around Hoober Feeds and L&K Mills and will lead the combined efforts of both organizations in the dairy industry, Wagner will assume a broader manufacturing and operations role at Wenger. In his role, Wagner will continue to be engaged at Hoober Feeds in terms of its strategic direction and oversight of mill operations, similar to Wenger’s other mills.
The Wenger Group is a leading family-owned agricultural products and services organization that includes Wenger Feeds, Nutrify and Dutchland Farms. With more than 300 team members and seven feed milling locations in two states, the company is a regional provider of poultry and swine feeds, performance ingredient solutions, niche market eggs and allied services in the mid-Atlantic region.
John J. Hoober is a feed manufacturer located in Gordonville, Penn., that has been in operation since 1937 producing a variety of high-quality animal feeds with a focus on the dairy industry. Hoober Feeds has an affiliated location in Central Bridge, N.Y.
L&K Mills is a feed manufacturing and nutrition company in Benton, Penn. With a commitment to providing high quality feeds and services to customers involved in animal agriculture, L&K Mills offers a variety of products. L&K has been in operation since 1964 serving the agriculture industry in North Central Pennsylvania.