(Yicai Global) Sept. 26 -- Chinese meat giant WH Group Ltd [HK:0288] plans to acquire two Romanian meat products firms through its overseas subsidiary to gain leadership in the local market
WH Group's wholly-owned subsidiary Smithfield Foods Inc.[NYSE:SFD], an American meat giant, signed a deal yesterday to acquire the two meat product firms Elit SRL and Vericom SRL, WH Group said in a statement, but without disclosing the deal's precise price tag.
Elit and Vericom have three meat products factories, five distribution centers and related assets in Romania. The two firms sell 25,000 tons of meat products to 12,000 local customers each year, and their production capacity is expected to grow to 45,000 tons per year.
The acquisition will enable Smithfield to take the lead in the Romanian meat market and sell a portfolio of branded products in more profitable traditional channels, WH Group said.
WH Group acquired Smithfield for USD7.1 billion in 2013. The latter, founded in Virginia in 1936, is the world's largest pig producer and pork supplier.