Thorn Apple Valley Meat Sold

Excel Corp. (Wichita, KS) lost its bid Friday to purchase Thorn Apple Valley to IBP Inc. (South Dakota) during a court-ordered auction. IBP bought the company for $115 million plus $2.5 in industrial revenue bonds.

Thorn Apple Valley (Michigan) packs and sells meat products under the Colonial, Corn King and Wilson brand names. The company filed for bankruptcy in March after a costly product recall in January.

IBP last month signed a letter of intent to buy the company for $112 million. Excel then submitted an unsolicited bid for $114 million. Thorn Apple Valley asked the court to allow both offers to be considered. At a hearing last week, the federal bankruptcy judge in Michigan ordered the company to be sold at auction.

Excel officials were disappointed with the outcome after the company submitted the higher bid but still lost the sale.

Edited by Christine Fraser