Nov 21 Smithfield Foods said it would buy parent
of the Farmer John and Saag's Specialty Meats brands, and farm
operations in three U.S. states from Hormel Foods Corp
for $145 million in cash.
Smithfield will buy Clougherty Packing as well as hog farm
operations under PFFJ, or Pigs for Farmer John, in California,
Arizona and Wyoming, expanding its supply chain in the United
The businesses being acquired contributed about $500 million
in sales and about 3 cents per share in earnings to Hormel in
Smithfield, bought by WH Group Ltd in 2013 for
$4.7 billion, is the world's largest pork processor and hog
"While the businesses have performed well, they no longer
align with our company's growth strategies," Hormel Chief
Executive Jim Snee said in a statement.
Hormel said Farmer John harvests about 7,400 hogs per day.
Shares of Hormel Foods were marginally up at $35.10 in
after-hours trading on Monday.
(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by