Smithfield foods to buy american foods group inc

Nation's Restaurant News, Nov 26, 2001

SMITHFIELD, VA. -- Pork-processing giant Smithfield Foods Inc., which has its headquarters here, agreed to buy American Foods Group Inc. American Foods is the 10th-largest beef processor in the United States. Terms of the acquisition were not disclosed.

American Foods, a privately owned firm based in Green Bay, Wis., generates sales of about $581 million and produces boxed beef, ground beef and value-added products.

When the acquisition has been completed, Smithfield will rank as the No. 4 beef processor in the country.

The purchase marks the third beef-processing acquisition for Smithfield Foods this year. The firm bought Packerland Holdings Inc., also based in Green Bay, last month, and Moyer Packing Co. in June.

The purchases have established Smithfield Foods as a force in the U.S. beef industry. Once the American Foods purchase has been completed, Smithfield will have annual sales of about $2.6 billion. American Foods will become part of Smithfield's newly created beef division, which will be headed by Rich Vesta, chief executive of Packerland.

The acquisition is expected to close in January.