Smithfield Foods has finalized its purchase of approximately 13 million shares, or 50 percent of the outstanding common shares, of Pinnacle Foods for $6 million.

This is Smithfield Foods' second transaction in the last week to accelerate its case-ready business in the Northeast. Smithfield will combine its distribution capabilities with Pinnacle and recently acquired Moyer Packing Company to offer better service and a greater variety of pre-priced, pre-packaged case-ready products to food retailers. Pinnacle produces pork, beef, lamb and veal, while Moyer is a beef processor. Both companies are based in Pennsylvania.

Pinnacle expects sales of about $60 million this year. The agreement also calls for Smithfield Foods to provide a $30 million revolving line of credit to Pinnacle for working capital and other purposes.

Smithfield Foods sold about 75 million pounds of case-ready pork to food retailers in fiscal 2001, more than three times the volume of the prior year.

Smithfield Foods