Smithfield to acquire Sara Lee meats business

Aug. 1, 2006
Smithfield Foods Inc has signed a purchase agreement to acquire the European meats business of Sara Lee for $575 million, plus assumption of pension-related

Smithfield Foods Inc has signed a purchase agreement to acquire the European meats business of Sara Lee for $575 million, plus assumption of pension-related liabilities in an amount not to exceed $39 million. Smithfield intends to complete and finance this acquisition on a stand-alone basis through a 50 percent-owned joint venture with Oaktree Capital Management LLC.

The transaction is subject to customary regulatory and closing conditions and is expected to close by the end of September.

Smithfield intends to contribute its Jean Caby operations to the joint venture with Oaktree. With sales of $372 million in fiscal 2006, Jean Caby produces branded and private label processed meats for retail and foodservice customers in France and other European nations.

Sara Lee's European meats business generated $1.1 billion in sales in fiscal 2005 and holds its largest positions in France, Portugal, and the Benelux region. The company also has a presence in Germany, Italy, and the United Kingdom.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...