‘I hope for the best.’ Livingston residents react to sale of poultry giant Foster Farms
Livingston-based poultry giant Foster Farms announced Tuesday that it’s been sold to Atlas Holdings, a Connecticut holding company, for an undisclosed price.
Meanwhile, across the City of Livingston, residents took in the news that its largest employer was sold, marking the end of 83 years of family ownership.
Livingston Mayor Juan Aguilar told the Sun-Star that residents shouldn’t be too anxious about the transaction. The mayor said he was given a heads up about the sale before the news went public.
As far as he’s aware, Aguilar said, Foster Farms will continue operating out of the city under the new ownership. He said his constituents can most likely expect business to resume as normal.
“I would reassure the public that things will continue or improve,” Aguilar said, adding that it appears there’s good intentions behind the transaction.
According to the news release announcing the sale, the new owner will keep the Foster Farms brand. Donnie Smith, former chief executive officer at industry giant Tyson Foods, will assume the CEO role at Foster Farms.
The release did not say how the sale would affect the company’s roughly 12,000 employees. Foster Farms has turkey processing in Turlock and chicken plants in Livingston, Fresno, Porterville, Oregon, Washington and Alabama.
“A lot people are depending on those jobs,” Aguilar said. “I hope for the best. I’m very hopeful and excited.”
Aguilar said he has not yet corresponded with the new CEO, but is expecting to meet with her in the near future.
The Modesto Bee inquired by email about how the new ownership would affect other managers, plant employees and product lines. Those details will not be provided, responded Shea Maney, senior associate at Kekst CNC, a public relations firm based in New York City.
“The name Livingston is really associated with Foster Farms,” Aguilar said. “They’ve had a long history in town, ups and downs, but I’m always positive in thinking relationships with the city will continue.”
Former Livingston mayor Gurpal Samra also told the Sun-Star that he is hopeful the future holds a mutually beneficial relationship for Foster Farms and the City of Livingston.
“The Foster family was always good to Livingston,” he said. “I just hope that whoever comes in, we work with them.”
Longtime local legacy
Foster Farms long has been one of the largest employers in the San Joaquin Valley and a benefactor to many causes. Its hundreds of chicken and turkey products include fresh birds and parts, ground meat, deli slices, marinated items and frozen, breaded products.
The company also has had challenges. A 2013 salmonella outbreak sickened several hundred people. The management’s handling of COVID-19 cases in employees drew a scathing report from a congressional panel last month.
Samra said he doesn’t believe criticism over Foster Farms’ handling of the pandemic was a contributing factor to the sale. The transaction did not come as a surprise to Samra, as he said he’s been hearing rumblings about a potential sale for a couple years.
The former mayor did say that he sensed a distancing between the company and the city in recent years.
The Foster family long championed the Livingston community and supported its fire and police departments, Samra said, but he saw that relationship grow from more friendly to professional around the time that former CEO Ron Foster stepped down in 2014.
“I’m hoping they’ll be more community focused,” Samra said of the new owners.
The Modesto Bee’s John Holland contributed to this report.
