Smithfield to acquire Europe's Campofrio
Smithfield already owns a 37 percent stake in the business and said it talking with Campofrio Chairman Pedro Ballve about a joint de-listing takeover bid to acquire the remaining approximate 50 percent of Campofrio for €9.5 per share. A resulting deal would give Smithfield 87.6 percent controlling interest in Campofrío, officials said.
Officials said any takeover bid would be subject to various conditions, including (1) completion of confirmatory due diligence, (2) entering into all necessary binding agreements, (3) approval of the takeover bid by the Spanish securities commission, and (4) the waiver of the company's existing standstill agreement with Campofrio, which is currently effective until December 30, 2011. The transaction would also be subject to other regulatory approvals, including competition review.
"The acquisition of Campofrio would further Smithfield's long term strategy of becoming a leading global consumer packaged meats company," said C. Larry Pope, Smithfield's president and chief executive officer. "In addition, we are assessing potential synergies relating to sales, operations and raw materials with both our U.S. and international businesses," he continued.
In 2010, Campofrio reported revenues of €1.83 billion.