Smithfield will buy ConAgra unit for $575M

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
calendar icon 1 August 2006
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