Sausage maker Johnsonville plans to close its plant in Meadowside plant in Sheboygan Falls, Wisconsin, by the end of the year, according to a Jan. 11 emailed press release.
The decision to shutter its facility came after acquiring food contractor Salm Partners from private equity firm Entrepreneurial Equity Partners on Jan. 3. Under the acquisition deal, Johnsonville plans to transition some of its ready-to-eat sausage production to Salm’s facilities in Denmark, Wisconsin
“While this acquisition is key to the long-term success of our [ready-to-eat] sausage business — and the larger fully cooked sausage category in general — it’s not lost on us how a plant closing is distressing for our Members to hear,” Johnsonville CEO Don Fussner said in a statement.
All 390 Meadowside workers will retain their position with Johnsonville until at least June, Fussner said in the press release. Employees who stay through June will receive a bonus.
There is no Worker Adjustment and Retraining Notification Act post from Johnsonville on the Wisconsin Department of Workforce Development website at the time of publication. However, the company hopes that no Meadowside workers will be laid off, a Johnsonville spokesperson told Manufacturing Dive in an email. The company will also work to retain as many Meadowside employees in their production positions as possible, as well as employees at its other facilities in Wisconsin, Kansas and Illinois.
“That’s our goal, to find the impacted members [in] other operations roles in our network,” the spokesperson said.
As for Salm Partners, the contract food manufacturer will remain its own entity and keep its current leadership and operations. Details of the acquisition were not disclosed.
“This strategic partnership signals Johnsonville’s commitment to growing not only its own ready-to-eat (RTE) sausage business, but the RTE sausage category as a whole, with expanded access to Salm’s innovative meat manufacturing technologies,” Johnsonville said in a statement.
