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Latest headlinesManufacturing News

TECH FLASH

Hormel Foods Announces Sale of Clougherty Packing for $145M

Parent company of Farmer John and Saag’s Specialty Meats sold to Smithfield Foods

By Casey Laughman
Hormel
November 23, 2016

Hormel Foods Corporation has announced the sale of Clougherty Packing to Smithfield Foods.

Clougherty Packing is the parent company of Farmer John and Saag’s Specialty Meats. The sale also includes PFFJ farm operations in California, Arizona and Wyoming. The $145 million cash sale is expected to receive regulatory approval and close within 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,” says Jim Snee, president and chief executive officer. “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.”

Farmer John harvests about 7,400 hogs per day. In 2016, the businesses had about $500 million in sales and earned 3 cents per share.

Smithfield Foods has operations in 26 states, Mexico and Europe. It employs more than 46,000 people and has an annual revenue of $14 billion.

KEYWORDS: food and beverage companies

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Casey laughman0031

Casey Laughman is the former Editor in Chief of Food Engineering magazine. He has almost two decades’ experience as a writer and editor for mainstream and trade publications. He spent several years as a writer and editor for two news services before becoming the editor of a legal publication and managing editor of a trade magazine that covered the commercial facilities market.

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