Marel

USA - New owners of Butterball

02 Oct 2010

  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.

Image provided by Prime Equipment Group

 

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...
 
stocksinvestopedia.com
 

Source: newsroom - meattradenewsdaily.co.uk

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