FDBusiness.com

Hong Kong-based Shuanghui International Holdings, which is the majority shareholder of China’s largest meat processor, Henan Shuanghui Development, is acquiring US-based Smithfield Foods for $7.1 billion, including the assumption of Smithfield’s net debt. Smithfield Foods is a $13 billion global food company and the world’s largest pork processor and hog producer.

“This is a great transaction for all Smithfields takeholders, as well as for American farmers and US agriculture,” says Larry Pope, president and chief executive of Smithfield. “We have established Smithfield as the world’s leading and most trusted vertically integrated pork processor and hog producer, and are excited that Shuanghui recognizes our best-in-class operations, our outstanding food safety practices and our 46,000 hard-working and dedicated employees. It will be business as usual — only better — at Smithfield. We do not anticipate any changes in how we do business operationally in the United States and throughout the world. We will become part of an enterprise that shares our belief in global opportunities and our commitment to the highest standards of product safety and quality. With our shared expertise and leadership, we look forward to accelerating a global expansion strategy as part of Shuanghui.”

Shuanghui chairman Wan Long comments: “Shuanghui is a leading pork producer in China and a pioneer in the Chinese meat processing industry with over 30 years of history.Smithfield is a leader in our industry and together we will be able to meet the growing demand in China for pork by importing high quality meat products from the United States, while continuing to serve markets in the United States and around the world. The combination creates a company with an unmatched set of assets, products and geographic reach.”

Wan Long continues: “The acquisition provides Smithfield the opportunity to expand its offering of products to China through Shuanghui’s distribution network. Shuanghui will gain access to high quality, competitively-priced and safe US products, as well as Smithfield’s best practices and operational expertise.”