Smithfield Foods bought Spanish pork producer all from its parent company, Vall Cos. Group, for $60.7 million in cash to further the company’s growth through acquisitions.

Smithfield reports that Vall operates in Oklahoma and Texas and had sales of about $40 million in 2001. Vall owns 20,000 sows and produces about 350,000 market hogs a year, most of which were sold under contract to Seaboard in Guymon, Oklahoma.

The Oklahoma and Texas operations are the first in those states for Smithfield, which has hog farms in North Carolina, Virginia and Utah.

Smithfield contends it obtained all necessary regulatory approvals for the transaction. The company only plans to expand through acquisitions, not by expanding production at any of its current operations due to low market prices.

Reuters