JV Partner To Buy Smithfield's Stake In Butterball Turkey

Date : 09/10/2010 @ 10:18AM
Source : Dow Jones News
Stock : Smithfield Foods, Inc. (SFD)
Quote : 33.97  0.0 (0.00%) @ 2:05AM

JV Partner To Buy Smithfield's Stake In Butterball Turkey

Smithfield (NYSE:SFD)
Historical Stock Chart

5 Years : From Sep 2012 to Sep 2017

Click Here for more Smithfield Charts.

Smithfield Foods Inc. (SFD) will sell its 49% stake in the Butterball turkey business to joint venture partner Maxwell Farms, as widely expected, with the offer seen generating proceeds of about $175 million.

Smithfield President and Chief Executive Larry Pope reiterated that the company's minority ownership position in Butterball didn't permit it to execute the growth strategy that it thought necessary "to fully develop the company to its potential."

Smithfield in June said it had made an offer to purchase Maxwell Farms' 51% stake in Butterball and related turkey production assets for about $200 million.

Under the partners' agreement, Smithfield said, Maxwell Farms could either accept the offer to sell or be required to purchase Smithfield's 49% interest and its related turkey production assets.

The world's largest pork processor and hog producer plans to put the sale's proceeds toward shedding debt.

Smithfield on Wednesday reported it rebounded from a prior-year loss in its fiscal first quarter with a boost from higher prices, though revenue missed analysts' expectations. Looking ahead, Smithfield is poised to benefit from reduced total meat output, significantly smaller frozen stocks of animal proteins held in the nation's warehouses and continued strong exports.

Pope also said then that the company expected Maxwell to buy the Butterball stake.

Smithfield shares were down 11 cents in recent trading at $16.82. The stock is up 11% this year.

 
   -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com 
 
 
 

Latest SFD Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.