Signage is displayed outside the closed Smithfield Foods Inc. plant in Sioux Falls, South Dakota in … [+]
WH Group, led by China billionaire Wan Long, plans to sell Virginia-headquartered Smithfield Foods’ seasoning business to French food ingredients supplier Solina for $587 million, according to a Hong Kong Stock Exchange filing on Monday. (See filing here.)
WH bought Smithfield, the world’s largest pork processor and hog producer, in 2013. WH directors believe the sale of the Saratoga Food unit “presents a good opportunity for the company to unlock the value of the assets,” the company said in a statement. “The disposal will enable the company to reallocate capital into future investment opportunities and pursue other opportunities, while maintaining a key relationship with the buyer, a strategic supplier of raw materials for certain of the group’s production facilities.”
“It’s a great deal for our Saratoga team in the U.S. because it’s very complementary” with Solina’s business, said Smithfield Corporate Affairs Vice President Jim Monroe by telephone. Saratoga is focused on the U.S. market, whereas Solina is strong in Europe, he noted.
Headquartered in France, Solina counts more than 2,700 employees, production facilities in 19 countries and customers in more than 75 countries. Solina’s majority shareholder is Astorg.
WH Chairman Wan Long is worth $1.2 billion on the Forbes Real-Time Billionaires List today. WH Group was formerly known as Shuanghui International, and renamed itself in 2014.
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