Clemens Food Group in Hatfield.
The fifth-largest pork producer in the U.S. with $2 billion in annual revenue intends to keep the Kunzler brand.
Clemens Food Group in Hatfield Township has acquired 123-year-old pork processor Kunzler & Co. Inc. in Lancaster County, as of Monday, which came as a surprise to Kunzler’s union, according to multiple reports.
CFG officials called the acquisition “strategic” for the company’s future as it can continue to deliver “exceptional products while joining forces with another long-standing, family-owned Pennsylvania-based pork provider” that shares similar customer focus and family values, per National Hog Farmer.
Per the article, Clemens Food Group – the fifth largest producer of pork in the U.S. with $2 billion in annual revenue and a $45 million hog feed mill project – will take ownership of all Kunzler facilities and transportation operations. It plans to keep the Kunzler brand, but it is unknown what will happen to the Manor Street Kunzler headquarters and its two factories in western Pennsylvania.
“The decision to acquire Kunzler stems from both organizations’ earned industry reputations, as both are viewed as trusted providers of high-quality products to the marketplace,” said Clemens Food Group President Brad Clemens in the National Hog Farmer report. “As Chris Kunzler sought a successor to carry forward his family’s legacy after more than 123 years, I’m honored Clemens Food Group emerged as their ideal steward as there are many similarities between our cultures and commitment to excellence.”
According to Lancaster Online, union leaders at the Lancaster processing plant had no clue the acquisition was coming.
Daniel Ross Jr., president of the United Food & Commercial Works Local 152, which represents 175 Kunzler employees, told Lancaster Online that rumors of the sale began last week, and was confirmed with a letter the union received informing them the company will be acquired by Clemens.
“Local 152 has valued a partnership with Kunzler & Co. which has developed over the many years of collective bargaining,” Ross said in the article. “Local 152 intends to protect the interests of our hardworking members of the community who've provided dedicated service to Kunzler & Co. for many years.”
According to the article, the union has been operating on an extension since the expiration of its three-year contract in April; the acquisition was not mentioned in numerous negotiation sessions.
Local 152 plans to meet with Clemens Food Group to continue its collective bargaining, but remains “cautiously optimistic about them, per the report.
At present, Clemens Food Group employs about 5,000 people in multiple states, per Lancaster Online. Kunzler employs about 600 people across its company.
Started with $700 in life savings by German immigrant Christian Kunzler, Kunzler & Co. generates $150 million in annual revenue in 2017, per reports.
"It has been an honor and a privilege for the Kunlzer family to have been invited to the table of our customers for over 120 years, but now is the right time to pass the company reins, said ex-Kunzler President Chris Kunzler in a Farm Journal report. “We found a great steward to carry on the Kunzler family legacy and we look forward, with joy and anticipation, to what they will do to enhance and grow the brand and product offerings."
There was no information provided on the sale price, according to ABC27 News.
