Smithfield buys stake in Italian food maker
stake in Italian food maker Stefano Foods, expanding its deli
offerings to include convenience foods.
Smithfield, the biggest US pork processor has bought a majority stake in Italian food maker Stefano Foods, expanding its deli offerings to include convenience foods.
In a statement, Smithfield did not disclose a transaction price, but said it acquired 80 per cent of privately held Stefano's for five and one-half times earnings before interest, taxes, depreciation and amortization. Stefano's, based in Charlotte, North Carolina, has annual sales of about $22 million (€23.3m).
Stefano's management will hold a 20 per cent interest and stay actively involved in the business, Smithfield said. The company's products are sold through many major US supermarket chains and club stores.
"Stefano's line of convenience foods fits perfectly with our strategy of focusing on the value-added, high-margin segment of the business," said C. Larry Pope, Smithfield president and chief operating officer.
Stefano's products will be marketed through Smithfield's deli group, formed in February to market deli meat brands to supermarkets.
Kansas City-based Farmland Industries, the largest US farmer-owned cooperative, rejected an attempt by Smithfield last week to purchase its meat businesses. Smithfield has been aggressively expanding its portfolio beyond pork.
