West Liberty Foods adding fourth plant with acquisition

An Eastern Iowa cooperative is adding a fourth processing plant with the acquisition of a defunct Illinois company.

West Liberty Foods purchased virtually all the assets of Quantum Foods of Bolingbrook, Ill. The transaction was valued at $12.7 million.

Quantum Foods filed for Chapter 11 bankruptcy protection in February. It produced ready-to-cook and fully cooked foods made from beef, poultry and pork.

Quantum Foods was founded in 1990 as a hand-cut butchering operation that worked with national restaurants and retail markets. In 2000, it began selling products to the military. As military operations expanded, Quantum Foods' business grew.

Quantum Foods tried to work a deal with Raging Bull Acquisition Co. to sell the company for $54 million, but the deal fell through in May. A webcast auction was scheduled for this week before the West Liberty Foods acquisition was announced.

Quantum Foods' assets included a 220,000-square-foot production facility, an 80,000-square-foot culinary facility and a 250,000-square-foot cold-storage distribution center.

Ed Garrett, president and CEO of West Liberty Foods, said the cooperative expects to begin meat processing operations at the Bolingbrook location within the next 30 days.

'This acquisition will enhance our offerings and benefit our customers, employees and owners,” Garrett said. 'In addition, we will be able to bring back jobs lost when Quantum Foods shut down its business.”

West Liberty Foods has three manufacturing locations in West Liberty and Mount Pleasant, and Tremonton, Utah.