Smithfield Foods Inc. (NYSE: SFD) is buying competitor Clougherty Packing LLC, a manufacturer of two branded pork and meats brands, from Hormel Foods Corp. (NYSE: HRL) for $145 million. The deal includes the target's two facilities plus three additional farm operations in California, Arizona and Wyoming.
Clougherty Packing, established by the Clougherty family and based in Southern California, owns food brands Farmer John and Saag’s Specialty Meats. Farmer Johns was founded in 1931 and makes pork products such as fresh-cut loin, lunch meat, breakfast sausage, bacon, and boneless and bone-in cooked ham. Saag’s Specialty Meats is a premium brand of deli meats and specialty sausage products made without any artificial flavors, colors, fillers, extenders or monosodium glutamate, according to the company. Clougherty Packing packages and distributes the products of its subsidiaries to brand retailers such as: Costco Wholesale Corp. (Nasdaq: COST), Safeway Inc. (NYSE: SWY), Wal-Mart Stores Inc. (NYSE: WMT), Food 4 Less of Southern California Inc., and Stater Bros. Holding Inc. The target sponsors the Los Angeles Dodgers professional baseball team and makes team’s Dodger Dog.