China-based pig producer and pork processor WH Group has sold its entire equity interest in European processor Campofrio to Mexican company Alfa for $354 million in cash. The sale represents approximately 37 percent of the entire issued share capital of Campofrio.
WH Group Chairman and CEO Wan Long said: "The transaction will further strengthen WH Group's financial fundamentals and improve our capital structure. This will lay a solid foundation for our future development and global expansion."
"We will uphold our global expansion strategy to further strengthen our leadership in the global pork industry. With the European Union remaining a strategic focus, we will tap growth from the ongoing development of our existing platform there, as well as from continuing to identify potential strategic acquisitions."
C. Larry Pope, president and CEO of WH Group subsidiary Smithfield Foods, added: "This transaction reflects Smithfield's commitment to continually review our portfolio and generate cash to support our long term priorities. It is aligned with our strategic initiative to strengthen our balance sheet and reduce our financing costs."
European operations for Smithfield Foods include businesses in hog production, meat processing and packaged meats in both Poland and Romania. These operations achieved record highs in their financial results in the latest reporting period.