Smithfield Subsidiary Sells European Meat Processing Business
Smithfield Foods, Inc., a Smithfield, Va., wholly owned subsidiary of WH Group Ltd. based in Hong Kong, announced the sale of its entire equity interest in Campofrio Food Group, Spain, to Alfa for $354 million in cash. The sale represents approximately 37% of the entire issued share capital of Campofrio.
"This transaction reflects Smithfield's commitment to continually review our portfolio and generate cash to support our long-term priorities. It is aligned with our strategic initiative to strengthen our balance sheet and reduce our financing costs," says C. Larry Pope, president and CEO of Smithfield.
"The transaction will further strengthen WH Group's financial fundamentals and improve our capital structure,” says Wan Long, chairman and CEO of WH Group. “This will lay a solid foundation for our future development and global expansion. We will uphold our global expansion strategy to further strengthen our leadership in the global pork industry. With the European Union remaining a strategic focus, we will tap growth from the ongoing development of our existing platform there, as well as from continuing to identify potential strategic acquisitions."
At present, Smithfield's European operations include businesses in hog production, meat processing and packaged meats in both Poland and Romania.