Smithfield Buys Hog Co. for $60.7M
%mlink(STRY:; PHOTO:; AUDIO:%)
SMITHFIELD, Va. (AP) _ Smithfield Foods Inc. said Wednesday it has acquired an Oklahoma-based hog production company for $60.7 million in cash.
Smithfield, the nation’s largest hog producer, said it bought Vall Inc. of Texhoma, Okla., from Vall’s Spanish parent company, Vall Companies Group. The U.S.-based subsidiary has operations in Oklahoma and Texas and owns 20,000 sows that produce 350,000 market hogs a year. Almost all of the company’s production is sold under contract to another Oklahoma company, Seaboard Corp.
Because of a current excess supply of hogs, Smithfield had said previously it has no plans to expand its own hog farms and will increase capacity only through acquisitions.
In trading on the New York Stock Exchange, Smithfield shares rose 6 percent, or 90 cents a share, to $16.