010445 Smithfield to Buy Moyer Packing

Smithfield, VA - Smithfield Foods Inc. said it has signed an agreement to buy Moyer Packing Co., the pork producer's first foray into the beef sector.

Souderton, Pa. based Moyer, with annual sales of about $600 million, is the country's ninth largest beef processor.

Terms of the acquisition were not released.

“We are the leader in providing case-ready pork to food retailers, and the addition of Moyer will be the first step in becoming a significant case-ready beef provider to our customers as well,” Smithfield chairman Joseph W. Luter III said.

Smithfield also announced earnings for the quarter ending April 29 are expected to exceed $.85 per share, compared to $.51 per share in the same period last year.

Fourth quarter earnings will be reported June 6.

Smithfield also will record unusual gains of about five cents per share on the sale of a processing plant in Canada, and about three cents per share on the sale of IBP, Inc. stock.

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