A sale expected to close in the second quarter of this year will transfer ownership of Iowa Premium, a Black Angus beef processing plant, to National Beef Packing of Kansas City, Mo.
Iowa Premium employs 800 people processing about 1,100 head of Black Angus cattle per day. The company markets beef products worldwide under several proprietary brands, including Iowa Premium Angus and Est. 8 Angus.
National Beef said in a news release it will own 100 percent of Iowa Premium when the transaction is finalized.
The sale is subject to customary conditions.
“I am excited to expand our beef operations with a processing facility in Iowa,” Tim Klein, president and CEO of National Beef, said in the release.
“We look forward to strengthening Iowa Premium’s relationships with the family farmers who produce the highest quality Black Angus cattle in the United States.”
Built in 1971, the 260,000-square-foot plant at 3337 L Ave. in Tama operates at less than half of its 3,000-head-per-day capacity. It was renovated in 2014 for $48.6 million, with the state providing $4 million in tax credits.
The renovation included a state-of-the-art wastewater treatment system and an animal handling facility designed by animal science professor and livestock industry consultant Temple Grandin.
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Start up began in fall 2014 with a handful of employees. Over the past five years, the workforce was expanded and cattle has been purchased from more than 1,400 Iowa farm families.
Iowa Premium’s domestic customer base has grown to include nearly every region of the country. The company also is a certified and approved exporter of Black Angus beef to more than 50 countries.
National Beef, with more than 8,400 employees, has operations in Kansas, Missouri, Ohio and Pennsylvania. The privately owned company generated sales of $7.5 billion in fiscal year 2018.