ATCHISON, Kan. (AP) ¿ MGP Ingredients Inc. said Monday it has completed the sale of its Kansas City, Kan., plant to Sergeant's Pet Care Products Inc. for an initial payment of $3.6 million.
The sale, completed on Friday, allows for additional payments depending on future earnings, said MGP, a maker of grain-based ingredients and alcohol products for the branded packaged goods industry.
The sale includes all equipment used to produce and package pet-related products at the 27-acre site, including extruded plant-based resins and pet treats.
MGP Ingredients will keep equipment at the plant used to produce the company's Wheatex textured wheat proteins, which can be used as a meat substitute geared toward vegetarians.Tim Newkirk, president and CEO of Atchison, Kan.-based MGP Ingredients, said the sale of the plant is part of a strategy to focus on the company's core business areas. Bob Scharf, CEO of Omaha, Neb.-based Sergeant's Pet Care, said the purchase allows his company to expand production of pet treats and meet increasing consumer demand. Shares of MGP Ingredients fell 1 cent to $4.12 in midday trading.