Smithfield Foods spins off European business amid US IPO plans

(Reuters) - Smithfield Foods, the world's largest pork processor, on Tuesday announced the separation of its European operations as the Virginia-based firm plans to list in the United States.

WH Group (OTC:WHGLY ), Smithfield's China-based parent group, was working with banks last year to take the pork producer public again in the U.S., but it has not revealed a timeline.

"It's the right time to establish our North American and European operations as standalone businesses empowered to execute distinct strategies addressing different market environments and opportunities," said Shane Smith, president and CEO of Smithfield Foods.

The separated European operations will remain with WH Group.

Smithfield Foods and Morliny Foods, previously known as Smithfield Europe, supplies fresh pork and poultry and packaged meats across the continent from operations in Poland, Romania, Slovakia, Hungary, Spain and the UK.



Morliny Foods has adopted a region-specific growth strategy to address a more fragmented European market with different market dynamics than in North America, the company said in a release.

"We will benefit by being a nimbler competitor with a focused strategy addressing the European food market," said Luis Cerdan, CEO of Morliny Foods.

Source: Investing.com