Smithfield Foods Inc., a wholly owned subsidiary of WH Group Limited, announced June 3 the sale of its entire equity interest in Campofrio to Alfa for $354 million in cash. The sale represented approximately 37% of the entire issued share capital of Campofrio.
"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," said C. Larry Pope, Smithfield's president and chief executive officer.
WH Group chairman and chief executive officer Wan Long said the transaction will further strengthen WH Group's financial fundamentals and improve its capital structure.
“This will lay a solid foundation for our future development and global expansion," said Long. "We will uphold our global expansion strategy to further strengthen our leadership in the global pork industry. 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."
At present, Smithfield's European operations include businesses in hog production, meat processing and packaged meats in both Poland and Romania. These operations achieved record highs in their financial results in the latest reporting period.