September 26, 2003

Canadian Maple Leaf To Buy Smithfield

Canadian food processor Maple Leaf Foods has agreed to acquire Smithfield Foods' Canadian food processing subsidiary Schneider Corporation for US$378m, including any outstanding debt.

Smithfield said the purchase price represents nine times Schneider's net earnings in fiscal 2003.

Smithfield acquired a 63% interest in Schneider in November 1998 in a share exchange valued at $70m, plus $57m in debt. In November 2001 the company completed the acquisition in a share exchange valued at $51m.