Trade Resources Company News Smithfield Foods to Acquire Two Romanian Packaged Meats Manufacturers

Smithfield Foods to Acquire Two Romanian Packaged Meats Manufacturers

Hong Kong-based pork supplying giant WH Group said that its subsidiary Smithfield Foods will acquire 100% stake of two Romanian packaged meats manufacturers Elit and Vericom for an undisclosed price.

The acquisition will further expand Smithfield Foods' operations in Europe.

The move will allow the pork processing giant to access three packaged meats manufacturing facilities, five distribution centers and related assets from Elit and Vericom, all located in Romania.

Both Elit and Vericom produce nearly 25,000 metric tons of branded, packaged meats annually which they sell through a nationwide distribution network to more than 12,000 customers.

The production capacity of the meats manufacturers is expected to be expanded to 45,000 metric tons.

WH Group anticipates the twin acquisitions to help its subsidiary Smithfield gain a top position in the Romanian packaged meats market with a branded portfolio of meat products sold in the higher margin traditional channel.

The transaction is subject to several customary conditions including an anti-monopoly approval from the relevant regulatory authorities.

Last month, the pork processor acquired 100% of Polish meat companies Pini Polska, Hamburger Pini and Royal Chicken for an undisclosed price.

According to WH Group, the acquisitions are in line with its strategic growth plans of strengthening the vertically-integrated supply chain of Smithfield in Poland. Besides, the acquisitions would grow Smithfield’s production of high-quality packaged meats products, said WH Group.

In the same month, Smithfield had also come up with a strategic investment of $25m in e-commerce meal marketplace Chef'd in a move to broaden its sales channels for its portfolio of brands.

Contribute Copyright Policy