Chinese Company Acquiring Smithfield

Smithfield Foods, Inc., is being acquired by Chinese meat processor Shuanghui Group for roughly $4.7 billion. The deal, valued at $7.1 billion including debt, will be financed through a combination of cash, debt rollover and debt financing from Morgan Stanley Senior Funding, Inc., and a syndicate of banks.

"The acquisition provides Smithfield the opportunity to expand its offering of products to China through Shuanghui's distribution network," says Shuanghui chairman Wan Long.

Shuanghui Group, which produces over four million tons of meat per year, operates China's largest trans-national meat processing company and temperature-controlled logistics network through its facilities across China.