Smithfield Foods considers bid for controlling interest in Spanish food company

  •  | 
Print this page

Smithfield Foods Inc. is considering making a bid for a controlling interest in Madrid-based Campofrio Food Group, a major European packaged meats company.

The Smithfield-based company and Pedro Ballve, the chairman of Campofrio,  are discussing a joint delisting takeover bid to acquire about 50 percent of Campofrio stock for €9.5 (euros) per share, the equivalent of $13.46 per share. The acquisition would give Smithfield Foods an 87.6 percent controlling interest in Campofrio. Smithfield Foods currently owns 37 percent of Campofrio.

In 2010, Campofrio reported revenues of €1.83 billion ($2.6 billion).

“The acquisition of Campofrio would further Smithfield’s long-term strategy of becoming a leading global consumer packaged meats company,” C. Larry Pope, Smithfield Foods’ president and chief executive officer, said in a statement.

Smithfield Foods said no financing arrangements have been finalized, but the company expects the €500 million, or $708 million, needed to finance the deal would be provided through a combination of existing liquidity and capital markets financings.

The takeover bid would be subject to a number of conditions, including approval of the bid by the Spanish securities commission and the waiver of a standstill agreement with Campofrio, which is currently effective until Dec. 30. The transaction would also be subject to other regulatory approvals, including competition review.

Reader Comments

comments powered by Disqus

showhide shortcuts