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SMITHFIELD, Va. - Smithfield Foods Inc. today announced it will pay $367.4 million and the assumption of certain liabilities to acquire substantially all of the assets of Farmland Foods, the pork production and processing business of Farmland Industries Inc.
Smithfield Foods, the world's largest pork producer, was the successful bidder at an auction Sunday, which also included a bid from Minneapolis-based Cargill Inc. Smithfield Foods' winning bid includes the assumption of $90 million in Farmland's pension obligations, plus other Farmland liabilities, Smithfield Foods said in a written release.
The Smithfield Foods bid is subject to bankruptcy court approval at a hearing scheduled for Oct. 28.
Farmland Foods is the nation's sixth-largest pork processor, with $1.8 billion in annual sales and 6,100 employees.
Farmland Industries, at one time the largest farmer-owned cooperative in North America, is in the midst of liquidating its assets after filing for bankruptcy in May 2002.