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Smithfield Closes Acquisition of Hormel’s Clougherty Packing
January 4, 2017
2 Min Read
Smithfield Foods recently acquired Hormel Foods subsidiary Clougherty Packing. Image courtesy of Flickr user cyclonebill
The world’s largest pork processor and hog producer Smithfield Foods Inc. announced Tuesday that its acquisition of Hormel Foods Corporation subsidiary Clougherty Packing LLC – the parent of Farmer John and Saag’s Specialty Meats brands – and PFFJ LLC farm operations is closed after the transaction was approved by the Committee on Foreign investment in the United States.
“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,” Smithfield’s president and chief executive officer Kenneth M. Sullivan said in a press release. “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.”
Smithfield’s hog production division will take in three farms in Arizona, California, and Wyoming. Vice president of operations for Smithfield’s packaged meats division, Kenneth J. Baptist, a food industry veteran with over three decades of experience, will take charge of Farmer John operations, the release said.
Powder & Bulk Solids reported in November that Smithfield Foods was paying $145 million in cash to Hormel Foods in the acquisition. Farmer John is the top bacon and sausage brand in southern California, using 7400 hogs in daily production, according to a November press release by Smithfield announcing its intent to purchase Clougherty Packing.
“While the businesses have performed well, they no longer align with our company’s growth strategies,” said Jim Snee, president and chief executive officer of Hormel Foods in a company release in November. “This divesture also allows for the integration of the pork processing facility at Farmer John with the majority of the live production operations which supply the facility, and are currently owned by Smithfield. We will work together to ensure a smooth transition for our employees and customers.”
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