US: Campofrio to acquire Groupe Smithfield
US pork producer Smithfield Foods said today (30 June) that it will sell its Groupe Smithfield venture to Campofrio Alimentacion, Spain's largest processed meat producer.
Groupe Smithfield, a joint venture with Oaktree Capital Management, will be merged with Campofrio, who will issue shares to Smithfield and Oaktree in exchange for all membership interests in the venture.
Smithfield, which currently owns 24% of Campofrio, will own 36% of the combined company after the merger.
The merger will form the leading pan-European company in the processed meats sector with sales of more than US$3bn, leading market shares in Spain, France, Belgium and Portugal and a strong presence in The Netherlands, Romania and Russia.
The combined company will be headquartered in Madrid, and will continue to operate under the Campofrio name.
"This is another key milestone in Smithfield's strategy to enhance its processed meats presence globally. The two companies are very complementary and merging them will provide many significant synergy opportunities," said C. Larry Pope, Smithfield president and CEO. "There is a clear correlation between an operation's size and profitability in European processed meats and this merger will make the combined Campofrio-Groupe Smithfield a much stronger company."
The merger, which is subject to shareholder and regulatory approval, including the grant of a takeover bid exemption by the Spanish securities regulator, is expected to close in Smithfield's third fiscal quarter, which ends in January next year.
The slump in the share price of Premier Foods last week serves to underline the threat that unstable credit markets represent to major food companies, particularly those with high debts. Ben Cooper re...
Smithfield Foods has today (18 December) announced that the merger of its European subsidiary Groupe Smithfield and Spanish meat group Campofrío Alimentacion has been finalised....
Workers at Smithfield Foods' meat packing plant in Tar Heel, North Carolina, have voted to unionise....
As Christmas nears and the temperatures drop here in the UK, competition in the food industry is heating up. This week saw two of the country's leading retailers, Tesco and Morrisons, issue an update ...
US pork producer Smithfield Foods has seen first-half operating profit plunge, despite a gain in sales, as high input costs hit its turkey and hog production units....
US cattle farming lobby group R-Calf and the Organisation for Competitive Markets (OCM), have filed joint litigation in the US District against the proposed acquisition of National Beef Packing Co by ...
The merger of Smithfield Foods' European subsidiary and Spanish meat group Campofrío has won shareholder approval....
Smithfield Foods has completed the sale of its domestic beef operations to Brazil's JBS....
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on Brexit's policy impact
- Interview: UK trade body on the impact of Brexit
- Nestle lowers outlook on "softer environment"
- China "transition" drags on Danone Q3
- UK announces "action plan" to drive food exports
- CP Foods invests in UK foodservice firm Foodfellas
- Farmers' groups slam Danone over non-GMO stance
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review