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Campofrio-Groupe Smithfield Merger Completed
Posted by: gurufocus (IP Logged)
Date: December 17, 2008 09:01AM

Press Release: Campofrio-Groupe Smithfield Merger Completed

Smithfield Foods Inc. is one of the world's largest pork processors and hog producer. Smithfield Foods conducts its business through two groups the Meat Processing Group and the Hog Production Group. The Meat Processing Group produces domestically and internationally a wide variety of fresh pork and processed meat products and markets them nationwide and to foreign markets. The company has vertically integrated into hog production through its Hog Production Group which provides the Meat Processing Group with its live hog requirements. Smithfield Foods Inc. has a market cap of $1.23 billion; its shares were traded at around $10.27 with a P/E ratio of 40.4 and P/S ratio of 0.11. Smithfield Foods Inc. had an annual average earning growth of 1.9% over the past 10 years.

More on SFD:

Gurus buys and sells of SFD
10-year financial history of SFD.
Insider buys/sells of SFD.

Press Release:


SMITHFIELD, Va., Dec. 17 /PRNewswire-FirstCall/ -- Smithfield Foods, Inc.(NYSE: SFD) announced today that the merger of Campofrio Alimentacion S.A.("Campofrio") and Group Smithfield Holdings S.L. ("Groupe Smithfield") hasbeen finalized. The new company will be known as Campofrio Food Group and willbe listed on the Madrid and Barcelona Stock Exchanges.

The merger creates the largest pan-European company in the packaged meatssector and one of the five largest worldwide. The company is the market leaderin Spain, France, Portugal and The Netherlands, and maintains an importantpresence in Romania, Germany, the United Kingdom, Italy and Belgium.

Smithfield Foods owns 37 percent or approximately 37.8 million shares ofthe new company. Previously Smithfield owned 24 percent of Campofrio and 50percent of Groupe Smithfield. Other significant shareholders are OaktreeCapital (24 percent), Pedro and Fernando Ballve (12 percent), Diaz Family andLuis Serrano (five percent), Caja Burgos (four percent) and QMC (two percent).The remaining 16 percent will be held by the public.

"This is a major step in Smithfield's strategy to grow and improve itsglobal packaged meats presence. The companies have complimentary manufacturingand marketing platforms, presenting the opportunity for value creation andsynergies," said C. Larry Pope, Smithfield Foods president and chief executiveofficer. "The merger produces the leading player in the European packagedmeats market, with leading brands in every market in which we operate," hesaid.

Mr. Pope noted that this transaction converts Smithfield's WesternEuropean ventures into a more liquid investment, with its shares in thepublicly-traded company having a market value of over $350 million, based onclosing price on December 2, 2008.

With sales of $12 billion, Smithfield Foods is the leading processor andmarketer of fresh pork and packaged meats in the United States, as well as thelargest producer of hogs. For more information, visit:8d49:http://www.smithfieldfoods.com.</p>:/8d49:;


Source: PRNewsWire

More on SFD:

Gurus buys and sells of SFD
10-year financial history of SFD.
Insider buys/sells of SFD.

Gurus who own SFD

SFD is in the portfolios of NWQ Managers.


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