Smithfield Foods, the nation's top pork producer, will buy Premium Standard Farms, the second largest pork producer, for $810 million, including about $117 million in debt.
"This is a business we know very well and it relates directly to our core competence," says C. Larry Pope,
Under the terms of the deal, each share of Premium Standard will be converted into the right to receive 0.678
John M. Meyer, PSF's president and chief executive officer, states, "Our agreement to merge with Smithfield enables PSF's shareholders to receive an immediate premium for their shares and continue to participate in the growth of Smithfield, a well-capitalized company with one of the best records of creating long-term shareholder returns of any company in any industry. As part of
The deal would increase
ContiGroup Companies, which owns 38.8 percent of Premium Standard's stock, agreed to support the deal.
The company plans to close the deal in the first quarter of 2007, but there could be a few roadblocks.
Plain says it’s logical for