August 24/Atchison, Kansas/Globe Newswire -- MGP Ingredients Inc. (MGPI) announced the sale of its Kansas City, Kan., facility to Sergeant's Pet Care Products Inc. The sale was completed for an initial payment of $3.6 million, with provision for additional earn out payments to be paid over time. The sale includes all equipment used for the production and packaging of pet-related products, which principally include extruded plant-based resins and finished pet treats. MGPI will retain ownership of equipment that is used for the production of the company's Wheatex textured wheat proteins, which are sold for use in meat extension and vegetarian product applications. This equipment is located in a separate section of the facility and will be operated under a toll manufacturing arrangement between Sergeant's and MGPI.
"The divestiture of this facility along with assets related to the manufacture of pet products is a key step in our business transformation process," said Tim Newkirk, MGPI president and chief executive officer. "It supports our strategy to place increased focus on those core areas of our business where we possess the greatest amount of expertise and can deliver the greatest amount of value to the categories we serve."