Smithfield, Tyson Make Hog Accord
SMITHFIELD, Va. (AP) _ Smithfield Foods is acquiring Tyson Foods’ hog production operations for 3 million shares of stock worth approximately $80 million.
Tyson’s Pork Group Inc. represents Tyson’s hog production operations and has roughly 110,000 sows in the Midwest and small operations in North Carolina. The operations are capable of producing about 1.8 million market hogs annually.
``It gives us high quality hogs in areas where we don’t have a lot of hogs now and gives us access to the Midwest,″ said Michael B. Miller, director of investor relations for Smithfield. ``It’s a good time for Tyson to sell because they are focused on chicken and we are focused on pork.″
Smithfield agreed earlier this month to buy No. 2 pork producer Murphy Family Farms of Rose Hill, N.C. in a $290 million deal. The purchase involves about 10 million shares of Smithfield stock plus the company’s assumption of about $170 million in Murphy Farms debt and other liabilities.
Smithfield’s brands include Smithfield Premium, Gwaltney, Schneiders, Esskay, Ember Farms and others.
The transaction is expected to close on Jan. 2, 2000.