GLOBAL: China’s Smithfield Foods sells stake in Campofrio Food Group | Progresiv
Smithfield Foods has sold its entire 37% stake in Campofrio Food Group for 354 million dollars in cash to Alfa, a Mexican conglomerate whose businesses include food, IT and automotive engine parts, the parent company of Smithfield said in a statement. 
Smithfield is a wholly owned subsidiary of WH Group, the largest pork producer in China and the world. Campofrio is one of Europe’s biggest packaged meat firms.
“The transaction will further strengthen WH Group’s financial fundamentals and improve our capital structure. This will lay a solid foundation for our future global expansion,” WH Chairman and Chief Executive Officer Wan Long said.
He added they are looking “to further strengthen our leadership in the global pork industry. With the European Union remaining a strategic focus, we will (be) continuing to identify potential strategic acquisitions.”
WH’s Hong Kong stock exchange announcement said “the transaction would result in a lump sum cash inflow and strengthen the company’s balance sheet.”
C. Larry Pope, Smithfield’s president and CEO, said the transaction would generate cash for the company, strengthen its balance sheet and cut financing costs.
WH’s net debt to equity ratio fell to 61 per cent in 2014 from 209 per cent in 2013. WH listed in Hong Kong in August 2014.
WH acquired Smithfield Foods in 2013 for 4.7 billion dollars. Smithfield’s European operations include businesses in hog production, meat processing and packaged meats in both Poland and Romania. (www.scmp.com)
