Smithfield Foods, owned by WH Group, is considering spinning off its pork business in the US and Mexico with a public listing. The world’s largest pork processor, Smithfield Foods would remain a subsidiary of Hong Kong-listed WH Group if the plans proceed.
The proposed initial public offering is still in the works and may not proceed, pending approval from relevant authorities. Investment banks like Bank of America, Goldman Sachs, and Morgan Stanley have been hired to explore the potential IPO, which could value the company at up to $1 billion.
The listing, as per sources, could take place this year. Smithfield Foods has declined to comment on the spin-off and valuation plans. The company, known for brands such as Nathan’s Famous and Farmland, has been closing processing plants in the US and terminating contracts with hog farmers.
Recently, Smithfield Foods announced the closure of a ham-boning facility in Iowa, leading to 300 job cuts. Production from this facility will be shifted to other locations operated by Smithfield Foods. Previous closures include a pork-processing plant in North Carolina and a site in California.
Additionally, Smithfield Foods has terminated contracts with hog farms in Utah and Missouri due to oversupply, increased costs, and lower demand. WH Group reported a decline in profits in the latest financial year, with revenue and EBITDA also showing a downturn.
