October 28, 2008
The merging of Campofrio Alimentacion SA and Groupe Smithfield Holdings SL has been approved.
The integration would require the absorption of Groupe Smithfield by Campofrio. As a result, Campofrio's shareholders have approved the capital increase by issuing 49.577.099 shares to be delivered to the shareholders of Groupe Smithfield.
Upon finalisation, the company will be renamed as Campofrio Food Group, and shareholders will include Smithfield Foods (37 percent), Oaktree Capital (24 percent), Pedro and Fernando Ballve (12 percent), Diaz Family (5 percent), Caja Burgos (4 percent), and QMC (2 percent).
This merger of equals would result in the creation of a leading European company in the processed meat industry with a turnover of EUR 2.1 billion (US$2.6 billion) and EBITDA of EUR 190 million (US$239 million) in 2007.
The new company will be positioned as the market leader and maintain an important presence in the EU.