John Morrell Finalize ‘Strategic Combination’
(NPN) -- Shuanghui International Holdings Limited and Smithfield Foods, Inc. announced today that they have completed their previously announced strategic combination.
Smithfield Foods is the owner of the John Morrell packing plant in Sioux Falls
"Today marks an exciting new chapter for both of our proud organizations as we formally begin a partnership that will benefit our customers, employees, producers and partners," said Shuanghui International Chairman Wan Long. "Together we look forward to utilizing our individual strengths, including Shuanghui's extensive distribution network in China and Smithfield's leading production and safety protocols, to provide safe, high-quality products to consumers worldwide."
Smithfield Chief Executive Officer and President C. Larry Pope added, "Our partnership ensures the stability of our business for all our stakeholders, particularly our employees and the communities we serve, while simultaneously unlocking exciting opportunities for growth in the large and rapidly growing Chinese pork market. This is a new era for Smithfield, but one that will continue to be defined by the strictest adherence to the highest standards of food safety and quality, an unwavering commitment to giving back to our communities and acting as a responsible global corporate citizen."
In connection with the completion of the strategic combination, each Smithfield shareholder will receive$34.00 per share in cash for each share of Smithfield common stock that they own. Smithfield will be a wholly-owned subsidiary of Shuanghui International Holdings Limited, operating as Smithfield Foods and under its existing brand names. Shares of Smithfield's common stock, as of the close of trading today, will no longer be listed on the New York Stock Exchange. Morgan Stanley acted as financial advisor to Shuanghui International and Paul Hastings LLP and Troutman Sanders LLP acted as legal counsel. Barclays acted as financial advisor to Smithfield and Simpson Thacher & Bartlett LLP and McGuireWoods LLP acted as legal counsel.
Shuanghui International Holdings Limited is a Hong Kong-based privately held company that owns a variety of businesses that include food and logistics enterprises. Shuanghui International and its subsidiaries are the majority shareholders of China's largest meat processor, Henan Shuanghui Investment & Development Co. Ltd. which is publicly listed on the Shenzhen Stock Exchange under the ticker symbol 000895. More information about Shuanghui International is available at www.shuanghui-international.com.
Smithfield Foods is a $13 billion global food company and the world's largest pork processor and hog producer. In the United States, the company is also the leader in numerous packaged meats categories with popular brands including Smithfield®, Eckrich®, Farmland®, Armour®, Cook's®, Gwaltney®, John Morrell®, Kretschmar®, Curly's®, Carando®, Margherita®, and Healthy Ones®. For more information, visit www.smithfieldfoods.com and www.smithfieldcommitments.com.
SOURCE: Smithfield Foods