日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Smithfield to buy Packerland Holdings for $250m
( 2001-09-08 12:25 ) (7 )

No. 1 US pork producer Smithfield Foods Inc., on Friday made its latest foray into the beef industry by agreeing to buy privately-held Packerland Holdings Inc., the fifth-largest US beef packer, for US$250 million.

Smithfield plans to acquire all the outstanding capital shares of Packerland in exchange for about 3.2 million shares of Smithfield common stock and the assumption of roughly US$118 million in debt and other liabilities. Packerland, based in Green Bay, Wisconsin, had US$1.4 billion in revenues in its most recent fiscal year ended in December.

In a statement, Smithfield Chief Executive Joe Luter said the acquisition would immediately add to Smithfield's earnings. Luter has told Wall Street that his company's growth strategy will continue to include acquisitions. After the deal, Smithfield will control roughly seven percent of the US beef market.

Smithfield, based in Smithfield, Virginia, has been trying to diversify into beef processing since it was outbid late last year by poultry giant Tyson Foods Inc.in an attempt to purchase IBP Inc., the largest US beef packer. Americans still consume more beef than any other meat, according the American Meat Institute.

Smithfield recently purchased several regional processors, including smaller eastern beef packer Moyer Packing Co. in June. But the addition of a major US beef operation with four plants in the Midwest and Southwest gives the company the increased size to better compete with larger rivals such as IBP and Excel Corp., a unit of agribusiness giant Cargill Inc.

"This is a logical fit, and not only that, I don't think that Smithfield is done," said Jeff Kanter, a Prudential Securities analyst. "Smithfield still has to get bigger."

MORE ACQUISITIONS LIKELY

The move is the latest in the consolidating US meat industry, which is under pressure to provide more diverse branded products to big supermarket customers. Along with its rivals, Smithfield has been trying to expand its offerings of higher-margin, pre-packaged meats that can be delivered directly to grocers' shelves.

"I think (Smithfield) will continue to make selective acquisitions in the beef sector that add to the value-added concept and strategy of expanding branded, processed beef products," said Midwest Research analyst Christine McCracken.

With operations in Wisconsin, Michigan, Arizona and Nebraska, Packerland has a daily kill capacity of 6,150 head of cattle and handles about five percent of US beef industry capacity. The company is the nation's largest supplier of beef from the Holstein breed of dairy cattle. It is focused on producing low-fat, low-cholesterol beef products.

"This obviously significantly strengthens (Smithfield's) position in the beef industry beyond Moyer on the East Coast, because Packerland is a very well-run company," said Steven Kay, the editor of Cattle Buyers Weekly. "That they are in the middle of the country gives Smithfield some strategic reach."

Richard Vesta, president and chief executive of Packerland will continue to run the company after the change in ownership, Smithfield said, adding that the acquisition will not affect Packerland's 4,000 employees.

Shares of Smithfield closed down 41 cents Friday to US$45.85 in New York Stock Exchange trading.