US meat processor Smithfield Foods has announced that it has entered into a definitive asset purchase agreement with bankrupt Farmland Industries under which Smithfield will acquire substantially all of the assets, and certain liabilities, of Farmland Foods, Farmland’s pork production and processing business, for approximately US$363.5m in cash.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The definitive agreement is supported by Farmland’s committee of unsecured creditors, which represents trade creditors, and Farmland’s committee of bondholders, both appointed in Farmland’s Chapter 11 bankruptcy case, Smithfield said.

Farmland Foods has annual sales of $1.8bn. For the first six months of fiscal 2003, ended 28 February, Farmland Industries reported that its pork production and processing business had income from continuing operations of $20.3m.

Smithfield stated that it expects the transaction to be accretive to its shareholders immediately after closing.

Pending approvals, the sale is expected to be completed in approximately 75 days, unless a higher offer is received.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Farmland Industries this week reported a smaller net loss of $47.2m for the fiscal third quarter to 31 May, compared with a year-ago loss of $189.5m.

Sales for the period rose to $1.72bn from $1.45bn a year earlier. Operating income was $45.3m, compared to a year-ago operating loss of $93.0m.

Operating income at the company’s pork unit reached nearly $9m, helped by a 3% increase in sales. The unit posted a loss of $6.2m a year earlier.

The company’s beef unit, which is not part of the bankruptcy reorganisation, recorded income of $11.4m, more than four times the year-ago income of $2.6m.