November 1, 2023
WH Group Limited, the world's largest pork company, has announced that its subsidiary, Smithfield Foods’ European operations formed a strategic alliance with Argal Alimentacion, a Spanish producer of charcuterie and other packaged meat products. As part of the alliance, Smithfield Foods will assume a 50.1% stake in Argal and current shareholders will maintain 49.9% of shares. The agreement is based on a medium-term plan with the agreed framework of joint management.
"This alliance will contribute to strengthening Argal's Group growth possibilities, both quantitatively and qualitatively, in internationalization, technological evolution, sustainability and competitiveness in general, allowing it to face current and future challenges regarding the evolution of society and the business world in general and in particular food and its different marketing channels to customers and consumers," said Antonio Escribá, chairman and José María Orteu, CEO, Argal Group. "It is also a project that will generate opportunities for the Argal’s team in their evolution and professional and personal growth.”
The agreement partners Argal with a global food company with strong distribution channels, a vertically integrated supply chain and other assets to accelerate the company’s growth. The companies will work together to achieve operational synergies and expand Argal’s reach into new markets. The project is based on the company's growth opportunities, with the company's team being a fundamental part of the future organic expansion as well as new initiatives.
“Our investment in Argal is consistent with our strategy to grow our portfolio of packaged meat products in Europe. Argal’s product quality, employees and management team make this alliance a solid platform for our growth in Spain and Europe,” said Luis Cerdan Ibanez, executive vice president, European Operations, Smithfield Foods.
"This alliance enables WH Group to establish its presence in Spain, an important and strategic market in Europe. It also aligns with the Company’s plan to further expand its global business with packaged meat products as its core business," said Wan Long, chairman, WH Group. "We believe that the investment will enhance the company's competitiveness in Europe, thereby strengthening its leading position in the global market.”
You May Also Like
Iowa turkey flocks confirmed with HPAIOct 23, 2023
Current Conditions for
New York, NY
Enter a zip code to see the weather conditions for a different location.
This Week in Agribusiness, Dec. 9, 2023Dec 09, 2023
Grains face modest end-of-week cutsAug 01, 2023
CN acquiring Iowa Northern RailwayDec 08, 2023
HPAI cases rising in California as virus spreads nationwideDec 08, 2023