990827 Smithfield Acquires French Meat OperationAugust 13, 1999Smithfield, VA - Smithfield Foods Inc., through its wholly owned subsidiary, Smithfield France SAS, has acquired a French processed meats company, Societe Financiere de Gestion et de Participation S.A. (SFGP), doubling the Company's private-label processed meats business in France. Terms of the transaction were not disclosed. SFGP, acquired from Jean Ducatel and minority shareholders, operates Charcuteries Imperator S.A., based near Lyon, and Jean d'Erguet S.A., of Brittany, makers of processed meats such as hams, dry sausage and hot dogs. SFGP sales exceeded $100 million in 1998. Together with Societe Bretonne de Salaisons (SBS), the Company's French processed meats subsidiary acquired in September 1998, Smithfield Foods now holds an 18% share of the private-label market. “With this acquisition, we now serve every major grocery retailer in France and have enhanced access to the Spanish market,” said Joseph W. Luter, III, chairman and chief executive officer of Smithfield Foods. “We have added significantly to our capacity and rounded out our product line with new items. We welcome SFGP to the Smithfield Foods family of companies.” Jean Quentin, chairman, president and chief executive officer of SBS, will continue in that position with the combined companies. “This acquisition gives us the capacity and expanded product line that we need to better serve a greater share of the French grocery industry,” Quentin said. “Jean d'Erguet and Imperator are sophisticated producers of high-quality products. This is a very logical fit for both groups.” Smithfield Foods is the largest hog producer and pork processor in the world. The Company's brands include Smithfield Lean Generation Pork, Smithfield Premium, Gwaltney, John Morrell, Patrick Cudahy, Schneiders, Krakus, Lykes, Esskay, Kretschmar, Valleydale, Jamestown, Dinner Bell, Realean, Patrick's Pride, Great, Tobin's First Prize, Peyton's, Curly's, Ember Farms and others.
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