Diversified meat and agricultural producer Seaboard Corp. (NYSE:SEB) recently purchased a large stake in turkey producer Butterball, LLC. This is one of the few times this obscure but great company even makes the news.
Not Just a Pork Producer
Seaboard is a pork producer, but is also involved in the grain and sugar business, and although headquartered in the U.S., the company has operations on three continents. The company has a $2 billion market cap and does $3.88 billion in annual sales. The investment in Maxwell Farms, the group that owns Butterball, is a $177.5 million cash investment for a 50% stake. The Butterball stake Seaboard is buying was initially owned by pork producer Smithfield Foods (NYSE:SFD), which is exiting the turkey business.
Why Seaboard Is Different
Seaboard is a little bit different than even its meat producing rivals such as Smithfield or Hormel
(NYSE:HRL). It's not just the outsized share price for Seaboard stock, which recently traded at $1,693 a share, though that should be a clue...