Smithfield Foods grows European presence with Romanian deal
It has entered into a share purchase agreement to acquire 100% of the share capital of Elit and Vericom. Subject to anti-monopoly approval from the relevant regulatory authorities, the deal includes three packaged meats manufacturing facilities, five distribution centres and related assets in Romania.
According to WH Group, the two companies manufacture and sell, through a nationwide distribution network to over 12,000 customers, approximately 25,000 metric tons of branded, packaged meats annually and have the capacity to grow to 45,000 metric tons per year.
In an statement, it said: “The group expects the acquisitions to give Smithfield a leading position in the Romanian packaged meats market, with a branded portfolio of products sold in the higher-margin traditional channel.”
This marks further expansion into Eastern Europe. In June of this year, Smithfield acquired Polish companies Pini Polska, Hamburger Pini and Royal Chicken from Pini Group. The deal was described as a “win-win” for the company and Poland’s agricultural industry by Smithfield CEO Kenneth Sullivan.
