The American group Smithfield Foods buys Argal

New investment by a multinational in a Catalan company. The American giant in the meat sector Smithfield Foods has acquired a majority stake in the Lleida-based group Argal, which with this operation returns to the hands of an American multinational 22 years after disassociating itself from Sara Lee.

In 2001, a group of Argal executives led by Josep Maria Orteu and Antoni Escribà bought the company from Sara Lee through a Management Buy Out (MBO) operation. Over the years, Orteu and Escribà acquired the share packages from the rest of the executives and have led the company's growth and expansion process, positioning it in sixth place in the ranking of Spanish manufacturers of processed meat products, according to the classification prepared by Alimarket magazine. Argal's goal is to reach 440 million in turnover in the current fiscal year.

In a statement, Argal announced the signing of "a strategic alliance" with Smithfield Foods, to whom it has sold 50.1% of the shares. The remaining 49.9% will remain in the hands of Orteu and Escribà, who will continue to lead the company. "The strategic alliance is based on an agreement in which the two groups establish a joint management framework, in close collaboration by all shareholders," the company detailed.

"This alliance reinforces the growth capacity of the Argal Group, both quantitatively and qualitatively, fostering its internationalization, technological evolution, sustainability, and overall competitiveness. This will allow us to face the current and future challenges of society, of the market in general, and especially in the food segment, strengthening marketing channels to customers and consumers. This is also a project that will generate great opportunities for the Argal team in their professional and personal evolution and growth," stated Antoni Escribà and Josep Maria Orteu, who hold the positions of president and CEO of Argal, respectively.

With the acquisition of this controlling stake in Argal, Smithfield Foods returns to the Spanish market, where it was already present for several years as the main shareholder of the Campofrío group. Smithfield's exit from Campofrío occurred in 2015, after the Chinese group Shuanghui, now called WH Group, acquired ownership of the American multinational. 37% of Smithfield's shares in Campofrío were acquired by the Mexican group Sigma, which today owns 100% of the Spanish meat company.

In turn, Smithfield Foods is 100% owned by WH Group, a Hong Kong-based giant, listed on the stock exchange and considered the world's largest group in the pork sector, leading two of the largest markets: China and the United States. Both WH and Smithfield operate in both the fresh pork meat sales business and the segment of cold cuts and processed meats, to which Argal belongs. At the time, the purchase of Smithfield by WH was considered the largest purchase made until then by a Chinese company in the US.

Smithfield's European subsidiary, which executed the purchase, currently operated only in Eastern Europe, with multiple production centers located in Poland, Hungary, Romania, and Slovakia. Including the United States ---where it is the leader in the pork market---, the group is present in seven countries, where it employs 60,000 people.

Founded in 1914, Argal's origins are in Pamplona, although the company's corporate center has been in Catalonia for decades, in the Lleida town of Miralcamp. In addition to Lleida, the group has production centers in Navarra, Extremadura, and Aragon, where it produces cooked ham, cured ham, turkey, fuet, pâtés, and all kinds of cold cuts and sausages. One of the company's major bets in recent years has been the diversification into the prepared meals business, with the production of hummus, crab salads, and potato omelets. According to the company, its exports reach more than 30 countries. In recent years, Argal has grown with the purchases of Embutidos Monells and the French charcuterie company Ogier.