Smithfield Foods Spins Off Europe Arm Ahead of IPO

Smithfield Foods: Smithfield Foods, the American food company has built up a shop in Europe as the company plans to launch its IPO in its domestic market.

The company which is China’s WH Group and based in Virginia said the decision “further accelerate the unique growth opportunities of both businesses”.

The European company has also changed its name from Smithfield Foods to Morliny Foods.

Morliny Foods has its operations in Poland, Romania, Slovakia, Hungary, Spain, and the UK. It offers services such as fresh pork and chicken, as well as packaged meats.

The news media reports that the change in the company’s structure will make it easier for the company to go public.

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Earlier, WH Group which owned Smithfield Foods for $4.7bn in 2013 noted that it had submitted an application to list the subsidiary on either the New York Stock Exchange or the Nasdaq stock exchange.

In a statement, WH Group said their plans to list can move further if it gets approval from the US Securities and Exchange Commission, the Hong Kong Stock Exchange, and any other relevant stock markets.

In a filing, WH Group, “There is no assurance that [the] proposed spin-off will take place or as to when it may take place.”

There has been no confirmation from Smithfield Foods that today’s move is linked to the listing process.

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Shane Smith who is the president and CEO of Smithfield Foods, said, “It’s the right time to establish our North American and European operations as stand-alone businesses empowered to execute distinct strategies addressing different market environments and opportunities.”

He further added, “In doing so, we provide our respective management teams with increased decision-making agility, optimising the performance and prospects for each business.”

Luis Cerdan, CEO of Morliny Foods reports, “We will benefit by being a nimbler competitor with a focused strategy addressing the European food market. We are confident this step will accelerate growth opportunities for our people and our company.”

While speaking about the separation, the company said, “Smithfield expects to continue to drive North American growth by building packaged meats’ share through product innovation, leveraging a well-recognized brand portfolio that spans consumer price points, continually optimizing its operations and through investments enabled by stable cash flows and a strong balance sheet.”

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