WH Group agrees to buy California's largest pork processor for US$145 million
WH Group, the world’s largest pork company, said its US subsidiary, Smithfield Foods has agreed to buy California’s largest pork processor Clougherty Packing and its two affiliates for US$145 million.
Smithfield Foods, the US pork company acquired by WH Group in 2013, has signed an agreement with Hormel Foods Corporation for the purchase of Clougherty, which operates under various brands including “Farmer John” and “Saag’s Specialty Meats”.
Clougherty provides a full line of branded pork products and owns an extensive sales network in the Southwestern US. It processes about 7,400 hogs daily and has sales of approximately US$500 million annually.
Founded in 1931, Farmer John is the No 1 bacon and sausage brand in Southern California.
Meanwhile, WH Group will acquire two affiliates of Clougherty which operate hog farms in Arizona, California and Wyoming.
WH Group said the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed before the end of 2016.
WH Group chairman and chief executive Wan Long, said the acquisition does not only expand and strengthen the vertically integrated supply chain, it also offers the company an immediate entry into the US West Coast market.
WH Group’s Hong Kong-listed share fell 0.48 per cent to HK$6.21 as of 11am.