Empire Kosher Poultry
In October 2003, Palisades purchased a majority of the equity ownership of Empire Kosher Poultry, Inc., and led a restructuring of the company’s commercial bank debt. Subsequently, Palisades purchased the remaining equity interests from an industry partner. Empire is an $80+ million company that is the world’s largest and best-known producer of kosher chicken and turkey products.
Empire had suffered from years of deteriorating financial results; and Palisades purchased the company at a time of crisis, with cash hemorrhaging and trade credit severely overextended. Palisades recapitalized the company and brought in a completely new senior management team - trimming the product line by approximately half, with favorable impact on costs and operating profits.
Palisades made available $10 million in new capital to restore a previously dilapidated physical plant and ensure the highest levels of product quality, taste and safety. Palisades also secured $3 million in matching funds from the State of Pennsylvania to modernize the physical plant and enhance the prospects of the largest employer in one of the state’s poorest counties.
Recent earnings (measured as EBITDA) have substantially exceeded those for the fiscal year at the close of which Palisades acquired the company.