USA, Smithfield, Virginia. Smithfield Foods, Inc. announced that it has begun the process to acquire Clougherty Packing LLC from Hormel Foods Corporation.
Through this agreement, which is expected to be complete within a month pending closing conditions and regulatory approvals, Smithfield will add the Farmer John and Saag's Specialty Meats brands to its lineup as well as two processing facilities and three farms to its operations.
Clougherty Packing LLC is based in Southern California and is a leading integrated producer and processor of a full line of branded pork products. Founded in 1931, Farmer John is the No. 1 bacon and sausage brand in Southern California. Saag's Specialty Meats is a premium brand of deli meat and specialty sausage made without any artificial flavors, colors, fillers, extenders or MSG. Along with two California-based processing facilities, Smithfield will acquire three PFFJ LLC farms located in Arizona, California and Wyoming. Altogether, the operations will add 2,000 employees, growing Smithfield's total workforce to 52,000.
The purchase price for Clougherty Packing LLC is $145 mill., pending capital adjustments at closing. The transaction is expected to take place within the next 30 days pending customary closing conditions and regulatory approvals.