Smithfield completes merger with PSF
May 8, 2007 9:30 AM
Smithfield Foods Inc has completed the acquisition of Premium Standard Farms Inc (PSF).
Under terms of the merger, each PSF share has been converted into 0.678 Smithfield shares plus $1.25 in cash. Total combined value of stock and cash to be received by PSF shareholders was $22.13 per PSF share, based on the closing price of Smithfield shares on the New York Stock Exchange as of May 4, 2007. The share exchange portion will be tax-free to PSF shareholders.
The purchase price was about $800 million, including the assumption of roughly $125 million of PSF net debt. PSF had about 32.0 million shares outstanding. Smithfield issued around 21.7 million shares in exchange for PSF shares.
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