Meat&Poultry - June 2013 - (Page 10)

Business Notes xx China’s Shuanghui makes bid for Smithfield Hong Kong-based Shuanghui International Holdings Ltd., chairman of Shuanghui. “Shuanghui is a leading pork enterprise, has entered an agreement to acquire Smith- producer in China and a pioneer in the Chinese meat pro- field Foods Inc. for approximately $7.1 billion, including cessing industry with over 30 years of history. Smithfield assumption of debt. xx both companies and their stakeholders,” said Wan Long, a majority shareholder of China’s largest meat-processing is a leader in our industry and together we will be able to The acquisition positions Smithfield to expand its of- ing high-quality meat products from the United States, work. Shuanghui will acquire all of Smithfield’s outstand- while continuing to serve markets in the United States ing shares for $34 per share in cash, which is a 31 percent xx meet the growing demand in China for pork by import- ferings in China through Shuanghui’s distribution net- and around the world.” premium to Smithfield’s closing stock price of $25.97 on “This transaction preserves the same, old Smithfield only with more opportunities in new markets and new frontiers.” Larry Pope The agreement provides Shuanghui with access to high-quality, competitively priced and safe US products, as well as Smithfield’s best practices and operational expertise, Long added. “We were especially attracted to Smithfield for its strong management team, leading brands and vertically integrated model,” Long said. “We look forward to working with Larry Pope and the many talented employees at Smithfield to grow the combined company as a leading global May 28. Smithfield’s stock price rose pork and processed meat producer with the same vision nearly 28 percent to $33.20 before and values of providing high-quality and safe products the market opened on May 29. to consumers.” Upon closing of the transaction, Smithfield’s common During a teleconference following the announcement stock will no longer be publicly traded, and the company of the news, Zhijun Yang, managing director of Shuang- will become a wholly owned independent subsidiary of hui, said, “Together, we can be a global leader in animal Shuanghui. The deal is expected to close in the second protein. China and the US are the most important mar- half of 2013. kets. We are No. 1 in China; Smithfield is No. 1 in the “This is a great transaction for all Smithfield stakehold- US. No other combination has such a great opportunity.” ers, as well as for American farmers and US agriculture,” Pope added, “This is an exciting day for Smithfield said C. Larry Pope, president and CEO of Smithfield. and Shuanghui.” He explained the acquisition was unani- “We have established Smithfield as the world’s leading mously approved by the board of directors of both com- and most trusted vertically integrated pork processor and panies. “[This] will create a leading vertically integrated hog producer, and are excited that Shuanghui recognizes global pork enterprise and set the global industry stan- our best-in-class operations, our outstanding food safety dard in food safety, environmental stewardship and ani- practices and our 46,000 hard-working and dedicated mal welfare,” Pope said. employees. It will be business as usual — only better — at Smithfield.” The transaction will provide value at a great price for Smithfield shareholders, Pope said. “The combination of Pope said he will continue in his role as president and Shuanghui and Smithfield makes great strategic sense,” he CEO of Smithfield, and Smithfield’s existing management added. “China is a large and growing market and is already team, as well as the management teams and workforces of the world’s single-largest, protein-consuming country.” its independent operating companies, will remain in place. The US agriculture industry, with its best practices, Additionally, there will be no closures at Smithfield’s fa- food safety, sustainability and world-class logistics and ef- cilities and locations. ficiency will help this new entity to become the low-cost, “We are pleased to have reached this agreement with Smithfield, which represents a historic opportunity for 10 high-quality producer of hogs and pork products in the world, officials said. ■ • Meat&Poultry • June 2013 • 010_MP_June13_Biz Notes.indd 10 6/6/2013 4:24:17 PM

Table of Contents for the Digital Edition of Meat&Poultry - June 2013

Meat&Poultry - June 2013
Table of Contents
Commentary - Now, we're cookin'
Business Notes - China’s Shuanghui makes bid for Smithfield
JBS posts $112.8M in Q1 earnings
COOL opponents vow to press on
Triumph Foods to expand pork facility
Hormel income dips on Jennie-O results, acquisitions
Washington - What’s in a name?
BBQ Report - Low & slow is red hot
BBQ Report - Carnivorous curriculum
Packaging Solutions - Consistency counts
Meat Processing Operations & Engineering - Small but savvy
Rooted in meat
Pushing pests out
Sanitation Tips - Usual suspects
CEO Series - Fit to lead
Ingredient Solutions - Meat makeover
Meat Perspectives - HAACP and more
From the Corral - STUNNING evidence
Names in the News
New Product Showcase
Classified Advertising
The Insider

Meat&Poultry - June 2013