September 14, 2010

 

Seaboard buys stake in Butterball

 

 

Seaboard has entered into an agreement to purchase a 50% interest in turkey product producer Butterball, in partnership with the Maxwell Farms group.

 

Earlier, 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.