A worker inspects filled bags of pet food before they're sealed at the Perfection Pet Foods plant in Visalia in this March 2020 file photo. The business at the time was a division of Western Milling in neighboring Goshen. Photo by David Castellon

A beleaguered Tulare County animal-feed producer is the latest big agribusiness to be acquired in the San Joaquin Valley.

With its corporate legacy dating back to 1935, Western Milling in Goshen is one of the oldest and largest industrial providers of mixed-grain cattle feed products to California’s dairy industry, according to a news release. As part of the acquisition agreement announced Monday, Western Milling’s Goshen headquarters and facilities in Hanford, McFarland, Texas and Arizona would be purchased by Colorado-based Viserion international, a global agricultural merchant.

Terms of the deal were not disclosed. It comes nearly a week after the announcement that a Connecticut-based holding company acquired Livingston-based Foster Farms. It also comes as Western Milling’s parent faces litigation related to the sale of the company to employees and the aftermath of a contaminated animal-feed scandal.

“We are thrilled to acquire this outstanding, multifaceted company whose feed mill and fertilizer operations will complement Viserion International’s existing grain-handling and commodity trading offerings,” stated Aaron Wiegand, CEO of Viserion International. “We look forward to working with Western Milling’s seasoned management team and excellent operational personnel, who will strengthen our international agribusiness platform.”

Kevin Kruse, outgoing Western Milling CEO and grandson of Western Milling’s founder Otto Kruse, will serve as executive chairman of Western Milling, according to a news release. Chad Pinter, currently chief financial officer of Western Milling, will succeed Kruse as CEO.

The acquisition bolsters Viserion’s growing portfolio of feed companies, according to New York-based Pinnacle Asset Management, which backed Viserion in the deal.

“Viserion International’s domestic growth plans will be significantly amplified by Viserion Milling’s comprehensive portfolio of agribusiness units and established presence in the California dairy market,” stated Jason M. Kellman, Pinnacle managing partner and chief investment officer. “Following Viserion International’s recent portfolio acquisition of ten grain elevator facilities from Zen-Noh Grain Corporation, we are pleased that the company continues to grow into one of the leading agricultural merchants in the U.S.”

In 2015 Western Milling executed an employee stock ownership plan, selling employees all of the company’s stock for $244 million. The plan was created a couple months after Western Milling issued a recall of horse feed believed to have led to the death of 21 horses at a Clovis horse ranch.

An employee sued the Western Milling parent company, alleging company officials violated the federal Employee Retirement Income Security Act in selling the stock at an inflated value.

A couple of years later, the stock purchased for $244 million was worth $27.4 million, losing 90% of its value, according to court documents. The lawsuit is still active.

Rabobank acted as the exclusive financial advisor to Kruse Western, Inc. — the selling entity — on the transaction.