010806 Smithfield Acquires The Smithfield Companies

Smithfield, VA - Smithfield Foods, Inc. completed the acquisition of The Smithfield Companies, Inc. Smithfield Foods acquired all of the outstanding common stock of Smithfield Companies for $18.0 million, or $8.50 per share. The merger agreement was announced April 30.

With annual sales of $20 million, Smithfield Companies is a producer of hams and other specialty food products. The company markets its products to the retail grocery, food service and gourmet food industries, as well as its own retail outlets and direct mail. Smithfield Foods said that the announced acquisition would provide new marketing resources and outlets for the sale of its products and additional plant capacity for pre-cooked barbecue meat products and sauces. The acquisition would also allow Smithfield Foods to exert greater control over the Smithfield brand name.

Based in Portsmouth, Virginia, Smithfield Companies' operating units include The Smithfield Ham and Products Co., V. W. Joyner & Co., Pruden Packing Co., E. M. Todd Co. and Williamsburg Foods.

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