With the impending acquisition of IBP, company officials assure that no changes will be made to IBP management or the local Storm Lake facility.
"There will be no change in operations, no change in staffing. IBP management will remain to oversee the day-to-day operations," Gary Mickelson, IBP comm-unications specialist, said.
The sale was announced earlier this week. DLJ Merchant Banking Partners III, a private equity fund affiliated with Donaldson, Lufkin and Jenrette, reached an agreement to acquire IBP's stock for $2.4 billion in cash, as well as the assumption of $1.4 billion in debt.
The sale of IBP will help the company achieve some of its long-term goals, officials said.
"Another advantage is that DLJ Merchant Banking Partners will be an excellent source of capital for IBP to implement our long-term business plan," Robert Peterson, chairman and CEO of IBP, said.
Mickelson gave two reasons for the sell out.
"We believe this move is in the best interests of the shareholders, who will receive a premium over where the stock has been trading," he said. "And DLJ... will be an excellent source of capital for us as we continue to grow and diversify."
Read the rest of this story in the 10/5 Pilot Tribune.