Hormel Foods Corp has sold Clougherty Packing, LLC to Smithfield Foods, Inc. for upwards of $145 million in cash. The newly-sold company is parent to Farmer John and Saag’s Specialty Meats, as well as PFFJ, LLC farm operations located in California, Arizona, and Wyoming.
“By folding Farmer John into our operations, we are better positioned to take advantage of our long-term strategic growth goals, which includes an increasingly diversified customer and consumer base and greater supply chain efficiency,” said Kenneth M. Sullivan, President and CEO of Smithfield Foods, according to a Smithfield release. “As we continue this transition and expand our operations, we are proud to welcome these new West Coast employees into our growing Smithfield family.”
While subject to customary closing conditions, the deal is expected to close within the next 30 days.
“We appreciate the Farmer John, Saag’s and PFFJ employees’ dedication and commitment to their customers and consumers. While the businesses have performed well, they no longer align with our company’s growth strategies,” said Jim Snee, President and Chief Executive Officer of Hormel Foods, in a statement. “This divestiture also allows for the integration of the pork processing facility at Farmer John with the majority of the live production operations which supply the facility, and are currently owned by Smithfield. We will work together to ensure a smooth transition for our employees and customers.”
Smithfield said that the acquisition will add 2,000 employees, growing the company’s total workforce to 52,000.