Smithfield completes merger with PSF
Smithfield Foods Inc has completed the acquisition of Premium Standard Farms Inc (PSF).
Under terms of the merger, each PSF share has been converted into 0.678 Smithfield shares plus $1.25 in cash. Total combined value of stock and cash to be received by PSF shareholders was $22.13 per PSF share, based on the closing price of Smithfield shares on the New York Stock Exchange as of May 4, 2007. The share exchange portion will be tax-free to PSF shareholders.
The purchase price was about $800 million, including the assumption of roughly $125 million of PSF net debt. PSF had about 32.0 million shares outstanding. Smithfield issued around 21.7 million shares in exchange for PSF shares.