Smithfield will buy ConAgra unit for $575M

by 5m Editor
1 August 2006, at 12:00am

US - Smithfield Foods Inc., the largest global hog producer and pork processor, said Monday it agreed to acquire most assets of the branded meats business of ConAgra Foods Inc. for about $575 million in cash and stock. The deal includes a turkey processing plant in Longmont. Brands being acquired include Armour, Butterball, Eckrich, Margherita and LunchMakers, which are marketed to grocers, delis and restaurants. The brands have combined sales of about $1.8 billion. Smithfield spokesman Jerry Hostetter said the acquisition will firm up the company's presence in the lucrative packaged-meats business. "It's very profitable, and it's another source to use our own raw materials from pork processing," he said. Source: Rocky Mountain News

5m Editor