010514 Smithfield Foods to buy Smithfield CosMay 6, 2001Smithfield, VA - Smithfield Foods Inc. plans to buy Smithfield Cos. Inc. in a stock deal valued at about $18 million to add marketing resources, sales outlets and plant capacity, the companies said in a joint statement. The deal calls for Smithfield Foods, which already has a 20% stake in Smithfield Cos., to pick up all the outstanding shares at $8.50 per share. Smithfield Cos. produces hams and other specialty food products with annual sales of $20 million. The company markets its products to retail grocery, food service and gourmet food industries, as well as its own retail outlets and direct mail. The acquisition needs two-thirds of the vote of Smithfield Cos. stockholders and is expected to be completed within 90 days. Shareholders holding about 76% of the outstanding shares of Smithfield Cos. have agreed to vote for the acquisition, the release said. In April, Smithfield Foods said it saw higher profits in its fiscal fourth quarter that ended April 29, planned a 2-for-1 stock split and had agreed to acquire Moyer Packing Co., the ninth-largest beef processor in the United States. Smithfield Foods, which was ousted in January from its attempt to acquire IBP Inc. by poultry giant Tyson Foods Inc., also said in April that it would not be the right time to look at an acquisition involving IBP.
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