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Smithfield Completes Sale of RMH and Maverick

by 5m Editor
12 January 2010, at 11:10a.m.

US - Smithfield Foods has completed the sale of substantially all of the assets of RMH Foods to a group of investors led by the Rocke family.

RMH Foods produces fully cooked beef, pork, and chicken entrees to retail customers, as well as the deli and foodservice channels.

At the same time, the company announced that it completed the sale of Maverick Food Company Limited, its Chinese joint venture, to COFCO Limited, China's largest national agricultural trading and processing company.

Maverick Food Company focuses mainly on hot dogs and other sausages, whole and sliced ham, bacon, Chinese style processed meat, and frozen and convenience food.

"The sale of these assets demonstrates our continuing commitment to shed non-core businesses with a greater focus on efficiencies and return on invested capital," said C. Larry Pope, president and chief executive officer.

"These divestitures are examples of how we have altered our strategy to deliver better returns to our shareholders," he continued.

Meanwhile, John Morrell, a wholly owned subsidiary of Smithfield Foods, has acquired the remaining 49 per cent interest in Premium Pet Health, LLC.

Premium Pet Health is a leading protein by-product processor that supplies many of the leading pet food processors in the United States.

"We are pleased to now be the sole owner of Premium Pet Health," Mr Pope said.

"As we continue to focus on our core businesses, it is logical for us to invest in a company that is synergistic to our fresh pork processing business and also has a superior return on invested capital."