Hormel Foods Corporation successfully dismissed an M&A dispute related to AgFeed Industries' (AFI) 2010 purchase of AgFeed USA, a hog production company, from Hormel Foods Corporation in 2010. Faegre Baker Daniels, led by partner Terri Combs, represented Hormel Foods Corporation in the resulting M&A dispute.
AFI claims Hormel provided an “estoppel letter” representing that AgFeed USA was in good standing with Hormel under all its agreements and that they would not have purchased AgFeed USA without the letter. Since the purchase, AgFeed USA filed for Chapter 11 bankruptcy. In 2013, Hormel received an $8 million arbitration breach of contract award against AgFeed USA. AFI brought an adversary proceeding against Hormel claiming Hormel made false representations in the “estoppel letter."