Mergers, Acquisitions and Dispositions

12 Months Ended

Dec. 29, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

MERGERS, ACQUISITIONS AND DISPOSITIONS

UGFH Merger

On December 29, 2024, United Global Foods Holdings (US), Inc. (“UGFH”), our immediate parent company, merged with Smithfield, resulting in Smithfield being the surviving entity. This transaction represented a common control transfer applied prospectively in the Company’s financial statements. As a result of the merger, the accounts of UGFH were added to our consolidated balance sheet, which was impacted as follows:


	December 29, 2024
	(in millions)
Prepaid expenses and other current assets	$	71
Deferred income taxes, net	(7)
Additional paid-in capital	$	77

Acquisitions

American Skin

On December 28, 2023, we acquired the remaining 15% interest in American Skin Food Group, LLC for $15 million.

Dry Sausage Facility

On July 30, 2024, we acquired a dry sausage production facility located in Nashville, Tennessee from Cargill Meat Solutions Corporation for $38 million. The acquisition is part of our strategy to grow our value-added packaged meats business and serve the growing demand for high-quality pepperoni, deli, charcuterie and other dry sausage products. The total cost of the asset acquisition was allocated based on the relative fair value of the assets acquired. The allocated fair values of the assets acquired are as follows: equipment valued at $17 million, buildings valued at $11 million, inventory valued at $5 million and land valued at $5 million.

Dispositions

Saratoga

On October 31, 2022 we closed on the sale of our Saratoga Specialty Foods operation (“Saratoga”), which produced spices, seasonings and sauces for sale primarily to the foodservice industry and for use in our internal production of various packaged meats products. Saratoga continues to be a supplier of ours subsequent to the sale. Proceeds totaled $575 million, resulting in a $417 million gain on the disposal. The gain was recognized in operating gains in the consolidated statement of income in the fourth quarter of 2022. The carrying amount of assets disposed of included $47 million of allocated goodwill. We received $568 million of proceeds at closing. The remainder was received in the first quarter of fiscal year 2023. Saratoga was accounted for in the Packaged Meats segment.

Altoona, Iowa Facility Closure

On August 30, 2024, we closed our Altoona, Iowa ham boning facility and consolidated production volume into other locations to improve manufacturing efficiencies. Costs associated with closing the plant primarily include operating lease assets and equipment that we disposed of prior to the expiration of the lease term or end of the asset’s useful life. The charges associated with the closing were not material. Altoona was accounted for in the Fresh Pork segment.