SMITHFIELD, VA. — Smithfield Foods Inc. has finalized the acquisition of Clougherty Packing L.L.C. from Austin, Minn.-based Hormel Foods Corp. The closing followed the approval of the sale by the Committee on Foreign Investment in the United States. The purchase price was $145 million in cash, which was adjusted for working capital.
The acquisition includes Clougherty’s Farmer John and Saag’s pork-processing operations. Three farms in Arizona, California and Wyoming are now part of the company’s hog production division. Kenneth J. Baptist, vice-president of operations for Smithfield’s packaged meats division, was tapped to lead Farmer John operations, which includes both the Farmer John and Saag’s Specialty Meats brands. Mr. Baptist brings to the job more than a decade of experience at Smithfield and more than 30 years of experience in the food industry.
|Kenneth M. Sullivan, president and c.e.o. of Smithfield Foods|
“We are proud to officially welcome Farmer John to our growing Smithfield family — a move that has already created new value for our combined operations and set the stage for a strong 2017,” said Kenneth M. Sullivan, president and chief executive officer of Smithfield Foods. “With this one acquisition, we’ve created a more efficient supply chain coast-to-coast and expanded our operations, product portfolio as well as our customer and consumer base.”Clougherty Packing’s Farmer John operation slaughters about 7,400 hogs per day and reported sales of about $500 million in fiscal 2016, according to Hormel Foods. The company produces a variety of bacon, hot dog and sausage products and has been in operation since 1931. Saag’s specializes in the production of premium deli meat and sausage products.