September 13, 2010
 

Smithfield Foods announces plan to sell turkey interests

Smithfield Foods, Inc. announced that its joint venture partner in Butterball, LLC has accepted Smithfield's offer to sell Smithfield's 49% interest in Butterball and its related turkey production assets.

Estimated net proceeds of the sale of approximately US$175 million will be used to reduce debt. Closing for the sale, which is subject to customary conditions, is expected to occur prior to calendar year end.

C. Larry Pope, president and chief executive officer of Smithfield said, "As previously stated, our minority ownership position in Butterball did not permit us to execute the growth strategy that we believe was necessary to fully develop the company to its potential. Accordingly, we are exiting the business, and will use the sale proceeds to further delever our balance sheet."

"We appreciate the support over the years of the customers, suppliers and associates of Butterball, as well as the associates of our turkey growing production facilities, and we wish the business well in the future," concluded Pope.