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KANSAS CITY, Mo. - Shareholders of pork producer Premium Standard Farms Inc. here approved Smithfield Foods Inc.'s acquisition of the company for $671 million in stock and cash.
Smithfield will also assume about $117 million of Premium Standard's debt as part of the deal. Under terms of the agreement, each Premium Standard share will be converted into the right to receive 0.678 Smithfield shares plus $1.25 in cash.
Once the transaction is complete, Premium Standard, the third largest pork producer in the United States, will become a wholly-owned subsidiary of Smithfield, a leading processor and marketer of fresh pork and processed meats in the United States, as well as the largest producer of hogs.
The closing of the acquisition remains subject to government approvals.