FAIRMONT – The Downs Food Group has taken a huge step toward its purchase of Fairmont Foods.

“We entered into a final purchase agreement,” Mike Downs, president of Downs Food Group, confirmed Thursday. “It’s not done, but it’s a definite purchase agreement.”

Downs was upbeat and hoped to have everything finalized “in a couple of weeks,” after all legal and real estate matters are handled. The plant will remain named Fairmont Foods Inc.

It is DFG’s intent to retain all Fairmont Foods employees, but they will “have to go through the hiring process,” Downs said. All employees will be subject to DFG’s standard hiring protocols and requirements.

“We’re looking forward to working with everybody,” Downs said. “We want to build on their reputation. We want to add volume.”

He anticipated no work stoppage or shutdown during the ownership transition.

News of the contract signing was met with exuberance at City Hall.

“This is just excellent news,” said Mike Humpal, city administrator. “This acquisition is great news for the (Fairmont Foods) employees and the community of Fairmont.”

Humpal said the Downs Food Group is a respected southern Minnesota company, headquartered in Mankato.

“It’s my understanding that a lot of synergies exist between Downs Food Group, Fairmont Foods and existing customers that make the acquisition a good fit for all,” he said.

Humpal pointed out that the large agricultural segment of the local economy will be strengthened by Fairmont Foods’ value-added processing and packaging of these commodities.

“Fairmont, specifically the physical location of Fairmont Foods, has a long history of value-added packaging and processing within our community. It’s just great news that these activities will be retained and, hopefully, expanded in the future,” he said.

A small committee from the Fairmont Economic Development Authority has been working with Fairmont Foods and the Downs Food Group since it learned of DFG’s interest. The committee discussed general assistance the city and state could provide, but “no specifics have been agreed to at this time,” Humpal said.

“The City Council and staff will be ready to assist the Downs Food Group in whatever capacity we can to be most helpful,” he said. “We look forward to working with the Downs Food Group and maintaining our strong relationship with the existing Fairmont Foods local management team.”

On Jan. 15, the ownership of Fairmont Foods announced its intention to permanently close operations by mid-March, action which would have resulted in the loss of about 170 jobs. Four weeks later, on Feb. 12, it was announced that Fairmont Foods had entered into a letter of intent with Downs Food Group, with DFG purchasing Fairmont Foods’ assets.