Milling & Baking News Corporate Profiles - November 2013 - (Page 120)

Company Overview Smithfield Foods, Inc. Shuanghui International Holdings Ltd. acquires the pork processor T he shareholders of Smithfield Foods, Inc., Smithfield, Va., voted Sept. 24, 2013, to approve the acquisition of the company by Shuanghui International Holdings Ltd., Hong Kong. Under terms of the agreement Smithfield shareholders received $34 per share in cash for each share of Smithfield common stock that they own. Including assumption of debt, the total purchase price was $7.1 billion. At a special meeting of Smithfield shareholders held Sept. 24, more than 96% of the votes cast were in favor of the transaction, which represented approximately 76% of Smithfield's total outstanding shares of common stock, according to the company. "The partnership is all about growth, and about doing more business at home and abroad," said C. Larry Pope, president and chief executive officer of Smithfield. "It will remain business as usual - only better - at Smithfield, and we look forward to embarking on this new chapter." Shuanghui International Ltd. is a holding company with business interests in food, logistics and flavorings. The company owns Henan Shuanghui Investment & Development Co., the largest meat processor in China with 2012 sales of $6.24 billion. Following the acquisition of Smithfield Foods, Shuanghui announced it would increase exports of pork from the United States to Asia. "The demand for protein, especially animal protein in countries like China and other emerging economies is increasing significantly as living standards rise," said Wan Long, chairman and c.e.o. of Shuanghui International. "The powerful combination of Shuanghui International and Smithfield strengthens our ability to serve the global market with our best-in-class quality, nutritious and safe food products. Additionally, we expect to achieve this with greater efficiency, capacity and flexibility." With the acquisition of Smithfield Foods, Shuanghui expands its position as a global meat processor. The company currently has 13 processing plants located throughout China and four more under construction. With the Smithfield acquisition, Shuanghui will add a company that had $13.2 billion in revenues during fiscal 2013. Smithfield's business is comprised of three segments. The Pork segment consists of three wholly-owned subsidiaries, including Smithfield Packing, Farmland Foods and John Morrell. The business processes Chief executive officer - Top brands - 2013 fiscal year global sales - C. Larry Pope 120 \ November 2013 a variety of fresh pork and packaged meat products in the United States and markets them nationwide as well as in China, Japan, Mexico, Russia and Canada. The business unit has 40 processing plants, eight of which are slaughter operations. During fiscal 2013, the company slaughtered 113,000 hogs per day and also sold approximately 2.8 billion lbs of packaged meats under a number of brands, including Smithfield, Farmland, John Morrell, Gwaltney, Armour, Eckrich, Margherita, Carando, Kretschmar, Cook's, Curly's and Healthy Ones. The company also has processes products for private label. Smithfield's International business consists of operations in Poland, Romania and the United Kingdom. The company also has a 37% stake in the Campofrio Food Group, a European packaged meats company based in Madrid, Spain. Hog Production is the final Smithfield business unit and features the company's hog raising operations. In fiscal 2013, Smithfield Foods had 853,000 sows that produced 16 million market hogs. The combination of its Hog Production and Pork business units allow Smithfield Foods to be vertically integrated and control its product from farm to table. CP $13.2 billion Smithfield Farmland John Morrell Gwaltney Armour Eckrich Margherita Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Caranado Kretchmar Cook's Curly's Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013