Major Chinese pork processor WH Group has started to reorganize its business, first by selling off a seasoning unit in the US while trying to expand its presence in the European market through acquisitions, reports Nikkei Asia. In an attempt to lessen reliance on the US and China for about 90% of sales, WH will change its earnings structure and attempt to expand further into the large European markets.
WH said in October that it will sell its US-based Saratoga Food Specialties seasoning maker to Solina Group, a European company in the same business, through its wholly owned US subsidiary Smithfield Foods. The deal, valued at $587 million, is expected to complete by the end of the year.
Saratoga Food chalks up $280 million in annual sales through development, production and sales of sauces and dressings. WH said in a news release that it will reallocate proceeds from the deal for future investment in the US.