USA: Smithfield Foods Inc sells 37% stake in Campofrio

USA: Smithfield Foods Inc sells 37% stake in Campofrio

Smithfield Foods Inc, which is a wholly-owned subsidiary of WH Group, has announced the sale of its entire equity interest in Campofrio - one of Europe’s biggest packaged meat firms - to Alfa for $354 million in cash.

Through Sigma Alimentos, Alfa is a leading producer, marketer and distributor of highly recognized branded foods in Mexico, the United States and Europe.

Commenting on the move, C. Larry Pope, Smithfield's president and chief executive officer, said: "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".

"We will uphold our global expansion strategy to further strengthen our leadership in the global pork industry”, added WH Group Chairman and Chief Executive Officer Wan Long. “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".

Source: Smithfield Foods