US pork producer Smithfield Foods has said it is to acquire 90% of Cumberland Gap Provision, a privately held producer of hickory smoked hams and sausages.
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Smithfield, the largest US producer of hogs and pork, said it had agreed to pay US$56m, excluding capital and other closing adjustments, for the 90% stake. The McGregor family, which founded Cumberland Gap, will keep hold of the remaining 10%.
Virginia-based Smithfield said it expects the deal to be completed within the next 45 days and to immediately contribute to its earnings.
Cumberland Gap has facilities in Middlesboro, Kentucky that have an annual processing capacity of more than 100 million pounds. The company posted net sales of $70m last year, reported Reuters.
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