Smithfield Foods spins off European business amid U.S. IPO plans

Smithfield Foods, the largest pork processor globally, announced on Tuesday that it is separating its European operations from its North American business as it prepares for a potential initial public offering (IPO) in the United States. The move is part of a broader strategy to streamline operations and better address the distinct market dynamics in different regions.

Smithfield’s parent company, WH Group, based in China, considered relisting Smithfield Foods on U.S. exchanges last year, but has not yet provided a timeline for the IPO.

Shane Smith, president and CEO of Smithfield Foods, emphasized that the decision to separate the European operations aligns with the company’s strategy to create more focused business units. “It’s the right time to establish our North American and European operations as standalone businesses empowered to execute distinct strategies addressing different market environments and opportunities,” Smith said in a statement.

The European business, which has been rebranded as Morliny Foods, will continue to be part of WH Group. Morliny Foods, formerly known as Smithfield Europe, operates across several countries in Europe, including Poland, Romania, Slovakia, Hungary, Spain, and the UK. The company offers a variety of products, such as fresh pork, poultry, and packaged meats.

Luis Cerdan, CEO of Morliny Foods, highlighted that the reorganization will enable the company to adapt more effectively to the fragmented European market.

The separation of Smithfield Foods’ European operations is expected to allow both the North American and European businesses to pursue more tailored growth strategies and enhance their market positions independently. This strategic move underscores Smithfield Foods’ commitment to optimizing its global operations amid evolving market conditions.