Shuanghui International Holdings Limited and Smithfield Foods, Inc. announced yesterday that they have completed their previously announced strategic combination.
"Today marks an exciting new chapter for both of our proud organizations as we formally begin a partnership that will benefit our customers, employees, producers and partners," said Shuanghui International Chairman Wan Long. "Together we look forward to utilizing our individual strengths, including Shuanghui's extensive distribution network in China and Smithfield's leading production and safety protocols, to provide safe, high-quality products to consumers worldwide."
Smithfield Chief Executive Officer and President C. Larry Pope added, "Our partnership ensures the stability of our business for all our stakeholders, particularly our employees and the communities we serve, while simultaneously unlocking exciting opportunities for growth in the large and rapidly growing Chinese pork market. This is a new era for Smithfield, but one that will continue to be defined by the strictest adherence to the highest standards of food safety and quality, an unwavering commitment to giving back to our communities and acting as a responsible global corporate citizen."
In connection with the completion of the strategic combination, each Smithfield shareholder will receive $34.00 per share in cash for each share of Smithfield common stock that they own. Smithfield will be a wholly-owned subsidiary of Shuanghui International Holdings Limited, operating as Smithfield Foods and under its existing brand names. Shares of Smithfield's common stock, as of the close of trading today, will no longer be listed on the New York Stock Exchange. Morgan Stanley acted as financial advisor to Shuanghui International and Paul Hastings LLP and Troutman Sanders LLP acted as legal counsel. Barclays acted as financial advisor to Smithfield and Simpson Thacher & Bartlett LLP and McGuireWoods LLP acted as legal counsel.
Thursdau September 26, 2013/ Smithfield Foods-Press release/ United States