Smithfield Foods Confirms Discussions to Acquire Controlling Interest in Campofrio Food Group
"The acquisition of Campofrio would further Smithfield's long term strategy of becoming a leading global consumer packaged meats company," said C. Larry Pope, president and chief executive officer.
4/7/2011 --- Smithfield Foods, Inc. confirmed that the company and Pedro Ballve are currently evaluating a joint de-listing takeover bid to acquire the remaining approximate 50 percent of Campofrio Food Group, S.A. for €9.5 per share. Mr. Ballve is the current chairman of Campofrio. The acquisition would give Smithfield 87.6 percent controlling interest in Campofrío, Europe's leading packaged meats company. Smithfield currently owns 37 percent of Campofrio.
This announcement is being made following the filing earlier today by Campofrio of a Communication of Relevant Fact with the Spanish securities regulators relating to the potential joint de-listing takeover bid.
The takeover bid would be subject to various conditions, including completion of confirmatory due diligence, entering into all necessary binding agreements, approval of the takeover bid by the Spanish securities commission, and the waiver of the company's existing standstill agreement with Campofrio, which is currently effective until December 30, 2011. The transaction would also be subject to other regulatory approvals, including competition review.
"The acquisition of Campofrio would further Smithfield's long term strategy of becoming a leading global consumer packaged meats company," said C. Larry Pope, president and chief executive officer. "In addition, we are assessing potential synergies relating to sales, operations and raw materials with both our U.S. and international businesses," he continued.
While no financing arrangements have been finalized, the company anticipates the estimated €500 million required to fund the takeover bid would be provided through a combination of existing liquidity and capital markets financings that will enhance shareholder value while maintaining a conservative balance sheet.
