Smithfield Foods, a subsidiary of WH Group, has divested its 37% stake in Campofrio Food Group to Mexican firm Alfa for $354m.
Based in Spain, Campofrio offers processed and canned meat, derivatives from pork and beef by-products, and other food products.
Campofrio has operations in Spain, France, Belgium, the Netherlands, Portugal, Germany, Italy, the United Kingdom, the United States, and Romania.
The sale of Campofrio stake is expected to bolster WH Group's financial fundamentals, as well as improve its capital structure.
WH Group will further strengthen its position in the global pork industry through potential expansion.
Smithfield Foods president and CEO C. Larry Pope said: "This transaction reflects Smithfield's commitment to continually review our portfolio and generate cash to support our long term priorities.
"It is aligned with our strategic initiative to strengthen our balance sheet and reduce our financing costs."
As reported in Reuters, Alfa, along with Sigma Alimentos, will be able to control 100% of the shares in Campofrio.
Alfa intends to sell its stake in Campofrio to Sigma in the future.
