MONTERREY, MEXICO — Mexican Food processor Sigma Alimentos and Hong Kong-based Shuanghui International Holdings are joining together to acquire Spain’s Campofrio Food Group, Madrid. The joint offer is for €6.90 ($9.45) per share of Campofrio Food Group stock, for a total investment of approximately €700 million ($958 million).
The two companies currently own approximately 82% of Campofrio’s outstanding shares. Through its acquisition of Smithfield Foods, Inc. on Sept. 26, 2013, Shuanghui International indirectly acquired approximately 37% of the outstanding shares of Campofrio. Following its acquisition of Smithfield Foods it was not clear how Shuanghui management would address the company’s ownership stake in Campofrio.
In a series of purchases from Nov. 13, 2013, to Nov. 27, 2013, Sigma acquired approximately 45% of the outstanding share capital of Campofrio.
With annual sales of €1.9 billion, Campofrio is one of the largest meat processors in Europe. The company has eight interdependent operating companies in France, Spain, Germany, Italy, Belgium, Portugal, The Netherlands, the United States and a joint venture with Caroli Foods in Romania.