TOKYO, Aug 24, 2018 - (JCN Newswire) - Mitsubishi Corporation(MC) is pleased to announce that its consolidated subsidiary Indiana Packers Corporation (IPC) has entered into a definitive agreement and plan to acquire 100% of shares of Specialty Foods Group, LLC (SFG), a manufacturer of processed meat products in the United States. The acquisition agreement is subject to regulatory approval and other closing conditions.
Established in 1914, SGF produces and markets processed meat products such as ham and sausage in the United States. SFG sells to a diverse customer base throughout the United States under a number of leading brands, "Kentucky Legend" being the most representative.
IPC is a fully integrated pork processor and owner of one of the largest hog slaughtering facilities in the United States. By acquiring SFG, IPC aims to expand its processed meats business and further strengthen the integration of its product chain.
Pork has already secured its position, along with chicken, as an essential protein source in the United States as well as in Asia, Latin America and other regions. Demand, however, is expected to continue seeing solid growth. In addition, the United States, where economic growth is forecast at around 3% per annum, remains one of the main consumer markets for pork. These factors, coupled with high productivity in feed grain raw materials such as corn, are reasons to expect the United States to maintain its global competitiveness for pork production.
MC's aim is to leverage its fresh food (meats and marine products) business to achieve sustained growth by building a strong production, procurement and sales network for fine animal protein products. Combined with the know-how built up in meat production and processing across the MC Group worldwide, this will help expand its livestock and meat business.
The acquisition of SFG by IPC is expected to create greater synergies that allow IPC to strengthen and stabilize the integration of functions across its production chains, thereby contributing to enriching the food choices available to consumers.
About Mitsubishi Corporation
Mitsubishi Corporation, headquartered in Tokyo, is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. Mitsubishi Corporation's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. For more information on Mitsubishi Corporation, please visit the company's website at https://www.mitsubishicorp.com/jp/en/.
Aug 24, 2018 10:47 HKT/SGT
Source: Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058)
Topic: Press release summary
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