Smithfield Foods’ European division has formed a strategic alliance with Argal Alimentation, a Spanish charcuterie and packaged-meats processor, announced via a release from Smithfield’s parent company, WH Group Limited.
An agreed framework of joint management serves as the basis for the overall agreement, and Smithfield Foods will assume a 50.1% stake in Argal, with current shareholders maintaining 49.9% of shares. Smithfield and WH Group’s global distribution network and vertical supply chain is expected to benefit Argal in this partnership, as it will gain reach into new markets.
Argal was founded in 1914 and produces charcuterie, cooked ham, cured ham, bacon, turkey, cold cuts, sausages, fuet, pâtés, and ready-to-eat meals in three processing facilities in Catalonia, Navarra and Extremadura, Spain. For fiscal 2023, Argal Group expects to declare revenues of approximately $465 million U.S. (440 million Euro), the release said.
For Smithfield Foods, the investment runs parallel to the company’s strategy to grow its portfolio of packaged meats in Europe overall and offers a solid platform for growth in Spain and Europe, said Luis Cerdan Ibanez, executive vice president, European Operations, for Smithfield.
