US meat giant Smithfield Foods’ has formed a strategic alliance with Spanish producer of charcuterie and other packaged meat products, Argal Alimentation.
Smithfield’s European operations will assume a 50.1% stake in Argal, based on a medium-term plan with the agreed framework of joint management.
Smithfield is owned by the world’s largest pork company, China’s WH Group. It said the agreement partners Argal with a ‘global food company with strong distribution channels, a vertically integrated supply chain and other assets to accelerate the company’s growth’.
Argal offers a wide range of charcuterie and other packaged meats, including cooked ham, cured ham, bacon, turkey, cold cuts, sausages, fuet, pâtés, among others as well as ready-to-eat meals, all made with high-quality raw materials.
It has production centres in Catalonia, Navarra and Extremadura, and exports to more than 30 countries through subsidiaries or distributors. It declared revenues of approximately €440 million for the 2023 fiscal year.
Headquartered in Smithfield, Virginia, since 1936, Smithfield Foods employs nearly 60,000 people in seven countries and partners with thousands of farmers around the world.
The companies will work together to achieve operational synergies and expand Argal’s reach into new markets.
Growth possibilities
Argal Group chairman Antonio Escribá and CEO José María Orteu: “This alliance will contribute to strengthening Argal Group’s growth possibilities, both quantitatively and qualitatively, in internationalisation, technological evolution, sustainability and competitiveness in general, allowing it to face current and future challenges regarding the evolution of society and the business world in general and in particular food and its different marketing channels to customers and consumers.”
Luis Cerdan Ibanez, executive vice president, European pperations, Smithfield Foods added:
“Our investment in Argal is consistent with our strategy to grow our portfolio of packaged meat products in Europe. Argal’s product quality, employees and management team make this alliance a solid platform for our growth in Spain and Europe.”
WH Group has leading pork market shares in China, the US and certain markets in Europe.
Wan Long, WH Group chairman, said: “This alliance enables WH Group to establish its presence in Spain, an important and strategic market in Europe. It also aligns with the company’s plan to further expand its global business with packaged meat products as its core business.
“We believe that the investment will enhance the Company’s competitiveness in Europe, thereby strengthening its leading position in the global market.”