Smithfield acquires three Polish meat companies
The trio of takeovers from Pini Group strengthens Smithfield Poland’s position as the largest food industry employer in the country, with 9,240 staff.
Smithfield Poland will gain Pini Polska’s meat processing and packaging plant, Hamburger Pini’s case-ready meat plant and the investment project Royal Chicken, which is under development.
Polish food producer Animex Foods, a subsidiary of Smithfield Poland, which is a business division of the $15 billion company Smithfield Foods, will manage all three firms.
A ‘win-win’ deal
Smithfield Foods CEO Kenneth Sullivan said the trio of deals would allow the company to expand in areas that offer growth potential. “This acquisition aligns with Smithfield’s strategic growth plans by strengthening our vertically-integrated supply chain in Poland and increasing our production of high-quality packaged meats products. It also capitalises on existing opportunities for us to expand in areas with very attractive market dynamics and to develop scale over time.
“This is a win-win for Smithfield, as well as Poland’s agricultural industry,” added Sullivan. “This move will help the Polish meat industry become more competitive across European and international markets.”
Smithfield’s desire to carve up Pini Group’s companies surfaced in April 2017 after the firm sought permission from the Office of Competition and Consumer Protection (UOKiK) in Poland to acquire the companies.
Under Polish law, takeovers or mergers need approval from UOKiK if the parties collectively generate revenue of €1bn worldwide or €50m in Poland. A spokesperson for UOKiK told this site: "Our proceedings revealed that the transaction will not restrict competition and will not affect consumers."
Smithfield Poland is owned by Smithfield Foods, a wholly-owned subsidiary of Hong Kong-based WH Group.
