is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist
Smithfield Wants Full Ownership of Butterball

Smithfield Wants Full Ownership of Butterball

Operational restructuring is needed to increase earnings potential.

Smithfield Foods is willing to pay approximately $200 million to buy out its joint venture partner's 51% ownership interest in Butterball LLC and its partners' related turkey production assets. In accordance with Butterball's operating agreement, Smithfield's partner may either accept the offer to sell or be required to purchase Smithfield's 49% interest and its related turkey production assets.

If the purchase is consummated Smithfield anticipates that a significant amount of capital investment and marketing will be necessary to increase Butterball's earnings potential. The company expects to conclude the buy or sell decision no later than September and close before the end of the calendar year. Butterball's debt obligations total about $215 million.

Smithfield President and CEO Larry Pope says Butterball needs to be restructured operationally and that takes capital. He says they haven't been able to secure the capital from either partner to make it work. Smithfield believes its current liquidity position will be sufficient to finance this transaction.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.