Magazine article Black Enterprise

Burger King Backs Meat Processing Plant; Diversity Food Will Be One of the Nation's Largest Black Companies

Magazine article Black Enterprise

Burger King Backs Meat Processing Plant; Diversity Food Will Be One of the Nation's Largest Black Companies

Article excerpt

Burger King Corp. and Hudson Foods Inc. are backing the formation of a meat-processing plant in Virginia that will be one of the largest black-owned companies in the country.

The new company will be located in Petersburg and will be called Diversity Food Processing LLC. Groundbreaking ceremonies for the $20 million, 75,000 square-foot facility were set for September and construction is scheduled to be completed during the spring of 1995, according to Burger King spokesman Michael Evans.

Stephen B. Singleteary, president and CEO of Diversity, will own 62% of the company. Burger King and Hudson will divide the remaining shares.

"Not only is this a major minority-owned business, but it's a facility that Burger King needs," explained Singleteary, 38, a Chicago resident who had owned 15 Burger King franchises in four states.

Singleteary explains he's selling his franchises to concentrate on Diversity. "I can't do both," he says.

The deal was also made possible by Miami-based Restaurant Services Inc. (RSI), an independent purchasing company that supplies Burger King restaurants. RSI agreed to purchase beef products from Diversity, which allowed the new company to get financing through the Northern Trust Co. in Chicago.

Once it's fully operational, Diversity is expected to have $125 million in annual sales. It will supply beef products to Burger King restaurants in eight to 10 states and to grocery stores. The company will employ about 60 people, Evans says.

Hudson Foods, based in Arkansas, is one of the country's largest producers of poultry products. It operates 14 processing plants in 10 states, employs more than 8,500 people and reported $920 million in sales in fiscal year 1993. …

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