FAIRMONT – News of a potential buyer for Fairmont Foods of Minnesota was met with a joy and relief around town Thursday.

Fairmont Foods has entered into a letter of intent with Downs Food Group Inc. of Mankato, with DFG purchasing the Fairmont Foods’ assets, according to an emailed statement from John Heuer, executive vice president of Fairmont Foods.

“In an announcement to its employees, DFG states: ‘Fairmont Foods and its team are respected in the industry, and we look forward to building on that foundation,'” the statement read.

“DFG has indicated it intends to offer employment to all current Fairmont Foods employees, subject to DFG’s standard hiring protocols and requirements,” the statement read.

Fairmont Mayor Randy Quiring, in La Crosse, Wis., on business, got the news via a voice message.

“I’m excited for the 167 [Fairmont Foods] employees,” he said. “I’m excited for the city. I’ve been very concerned about the employees. This is good news all around.”

Mike Humpal, city administrator, echoed Quiring’s sentiments.

“The news that Downs Food Group will acquire the assets of Fairmont Foods, keep the plant open and offer employment to all 170 employees is great news,” Humpal said.

Heuer’s statement also said the entities are hoping to finalize the transaction prior to the scheduled plant closure date of March 16.

“We must advise you that the transaction is not guaranteed, and DFG reserves the right to terminate its letter of intent, in which case Fairmont Foods would be compelled to proceed with plant closure,” Heuer’s statement read.

“City staff, FEDA board and City Council will do all they can to help the transition of Downs Food Group operations at Fairmont,” said Humpal, adding that details of such help have not been finalized at this time.

“It’s a win-win all the way around. Let’s just hope it goes through,” Quiring said.

Citing confidentiality, Mike Downs, president of DFG, declined to comment on the possible transaction “at this time.”

Humpal called Downs Food Group a “well-respected, local Minnesota company” with headquarters in Mankato.

In 1947, Tony Downs Foods began when Downs purchased a produce business in St. James, according to DFG’s website. He converted the business into a poultry-processing plant, building a multi-million dollar company over the next decades.

Under the leadership of Tony Downs’ son, Richard, growth continued with the addition of Double D Foods and Aussie Foods.

Four weeks ago, an announcement from Fairmont Foods that the plant would be closing permanently in two months stunned the community. The toll of a tough economy was cited as the reason. In spite of efforts to overcome the economic situation, the owners felt the company would be unable to recover and continue operations.