Seaboard sells half of Daily's Premium Meats to Triumph
Triumph buys half of Daily's
Seaboard Corp. has agreed to sell 50% of processed meats division Daily's Premium Meats to US pork group Triumph Foods.
The business will be run as a venture between the two companies. Triumph has paid US$72.5m for equal ownership of Daily's Premium Meats. Seaboard expects to record a pre-tax gain of around $55m.
In conjunction with the transaction, Seaboard's VP of processed meats, Kelly Hattan, was appointed president of Daily's.
Commenting on the deal, Hattan said the tie-up would "further solidify" Daily's raw material supply and geographical footprint.
Daily's offeres a variety of processed pork products and operates two processing plants in Salt Lake City, Utah, and Missoula, Montana. Under a prior agreement, Seaboard already markets and sells fresh products manufactured by Triumph at its St Joseph, Missouri, production plant.
Seaboard Corporation, Triumph Foods, LLC
SHAWNEE MISSION, Kan., Sept. 26, 2014 /PRNewswire/ -- Seaboard Corporation (NYSE MKT: "SEB") announced today Triumph Foods purchased a 50 percent ownership in Daily's Premium Meats, the processed meats division of Seaboard Foods, which produces and markets raw and precooked bacon, ham and sausage. Daily's Premium Meats will be owned 50/50 by Seaboard Foods and Triumph Foods as of September 27, 2014. As a result of the transaction, Seaboard received cash proceeds of $72.5 million and will recognize an estimated pre-tax gain of approximately $55.0 million, subject to final working capital adjustments.
In conjunction with the transaction, Kelly J. Hattan was appointed president of Daily's Premium Meats.
Hattan said, "This partnership will enable Daily's to further solidify a supply of high-quality raw materials while providing additional capital to expand production and the geographical footprint where Daily's sells its products. I'm excited about the significant opportunities for growth as a result of this enhanced partnership."
Daily's Premium Meats offers a variety of processed pork items from signature honey cured bacon to applewood smoked bacon to naturally smoked hams to breakfast sausages. Operating since 1893, Daily's has further processing plants located in Salt Lake City, Utah, and Missoula, Mont.
In addition to the Daily's partnership, Seaboard Foods, pursuant to an agreement, markets and sells fresh products produced by Triumph's St. Joseph, Mo., pork processing plant, as well as products produced by Seaboard Foods' Guymon, Okla., pork processing plant. The plants are part of an integrated food system that's known for unsurpassed quality and for being a top exporter of U.S. pork to more than 30 countries. Internationally, fresh pork products are marketed under the Seaboard Farms® and St. Joe Pork® brands. Domestically, fresh pork products bear the PrairieFresh® Premium Pork brand. Processed meats, such as bacon, hams and breakfast sausage, will continue to be marketed under the Daily's® Premium Meats brand.
SOURCE Seaboard Corporation
Original source: Seaboard Corporation
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