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Smithfield Foods Selected As Winning Bidder for Farmland Foods

by 5m Editor
13 October 2003, at 12:00am

US - Smithfield Foods, Inc. today announced that it was the successful bidder at an auction to acquire substantially all of the assets of Farmland Foods, the pork production and processing business of Farmland Industries, Inc., for $367.4 million in cash.

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The auction was held at Farmland headquarters in Kansas City, Missouri on Sunday, October 12, 2003, under auction and bid procedures approved by the United States Bankruptcy Court. In the auction, Smithfield’s agreement to assume the pension obligations was valued at $90 million by the debtor.

The company indicated that it expects the transaction to be immediately accretive to earnings before the impact of cost savings and synergies.

Smithfield’s successful bid is subject to Bankruptcy Court approval at a hearing to be held on October 28, 2003, and is subject to certain other customary conditions. Smithfield has previously received Hart-Scott-Rodino antitrust clearance for the acquisition and expects to complete the transaction early in its fiscal third quarter.

Farmland Foods has annual sales of $1.6 billion.

With annualized sales of $8 billion, Smithfield Foods is a leading processor and marketer of fresh pork and processed meats in the United States, as well as the largest producer of hogs. For more information, please visit www.smithfieldfoods.com.

Source: Smithfield Foods - 13th October 2003

5m Editor