Smithfield Food Inc. (SFD) Merges With Premium Standard Farms Inc. (PORK)
Smithfield Foods Inc. (SFD), the nation’s top pork producer, will acquire its largest competitor Premium Standard Farms Inc. (PORK) under an $810 million deal announced Monday. The boards of directors of Smithfield and Premium Standard Farms Inc. have unanimously approved a merger agreement in which Smithfield will acquire all shares of its competitor’s outstanding stock. The sale is expected to be completed in the first three months of 2007. The purchase of Premium Standard Farms is the latest in a long list of Smithfield acquisitions in the United States and around the world. They have made Smithfield the world’s largest producer and processor of pork products and a major player in the domestic beef industry. Smithfield’s 2006 sales topped $11 billion. This latest merger will increase Smithfield’s share of the domestic pork-production market to 18.5%, up from its current 13%, according to Jerry Hostetter, a spokesman for Smithfield. This is a big deal for SFD and increases shareholder wealth. Look for this stock to increase in the future.
posted by Stock Administrator @ 7:53 AM
Smithfield Food Inc. (SFD) Merges With Premium Standard Farms Inc. (PORK)
Smithfield Foods Inc. (SFD), the nation’s top pork producer, will acquire its largest competitor Premium Standard Farms Inc. (PORK) under an $810 million deal announced Monday. The boards of directors of Smithfield and Premium Standard Farms Inc. have unanimously approved a merger agreement in which Smithfield will acquire all shares of its competitor’s outstanding stock. The sale is expected to be completed in the first three months of 2007. The purchase of Premium Standard Farms is the latest in a long list of Smithfield acquisitions in the United States and around the world. They have made Smithfield the world’s largest producer and processor of pork products and a major player in the domestic beef industry. Smithfield’s 2006 sales topped $11 billion. This latest merger will increase Smithfield’s share of the domestic pork-production market to 18.5%, up from its current 13%, according to Jerry Hostetter, a spokesman for Smithfield. This is a big deal for SFD and increases shareholder wealth. Look for this stock to increase in the future.
posted by Stock Administrator @ 7:53 AM
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