Smithfield Foods to acquire Clougherty Packing for $145m

Global food company Smithfield Foods has initiated the process to pork product manufacturer Clougherty Packing from US-based Hormel Foods for $145m, pending capital adjustments at closing.

The transaction is expected to take place within the next 30 days, depending upon the customary closing conditions and regulatory approvals.

Smithfield will also be acquiring Farmer John, a bacon and sausage brand in southern California, as well as premium brand Saag's Specialty Meats.

In addition to two California-based processing facilities, Smithfield will acquire three PFFJ farms in Arizona, California and Wyoming.

Smithfield Foods president and CEO Kenneth Sullivan said: “By folding Farmer John into our operations, we are better positioned to take advantage of our long-term strategic growth goals, which includes an increasingly diversified customer and consumer base and greater supply chain efficiency."

The new acquisitions would increase Smithfield's workforce by approximately 2,000 employees, taking the total to 52,000.

Reported to be the largest pork processor and hog producer worldwide, the company offers a wide range of packaged meat products in the US.