Smithfield Foods is set to close within the month on the $145 million purchase of Clougherty Packing LLC from Hormel Foods Corporation. Along with the popular Farmer John and Saag’s Specialty Meats brand names, Smithfield will also acquire two processing facilities and three PFFJ (Pigs for Farmer John) pig farms, including the farm located north of Snowflake, to its operations.
In a press release, Hormel President and CEO Jim Snee said, “We appreciate the Farmer John, Saag’s and PFFJ employees’ dedication and commitment to their customers and consumers. While the businesses have performed well, they no longer align with our company’s growth strategies. This divestiture also allows for the integration of the pork processing facility at Farmer John with the majority of the live production operations which supply the facility, and are currently owned by Smithfield. We will work together to ensure a smooth transition for our employees and customers.”
Farmer Johns is the No. 1 selling brand of pork products and PFFJ anticipates that the transition will provide the additional strategic and financial resources for continued growth in the industry.
Kenneth M. Sullivan, president and CEO of Smithfield Foods., had this to say in his press release, “By folding Farmer John into our operations, we are better positioned to take advantage of our long-term strategic growth goals, which includes an increasingly diversified customer and consumer base, and greater supply chain efficiency.”
As of press time there was no response from Smithfield Foods regarding any changes that might be made to the Snowflake operation as a result of the purchase.
