WH Group

WH Group, formerly known as Shuanghui Group , is a publicly traded Hong Kong-based multinational meat and food processing company headquartered in Hong Kong.[1][2] Sometimes also known as Shineway Group in English-speaking countries, the company's businesses include hog raising, consumer meat products, flavoring products, and logistics.[3] It is the largest meat producer in China.[4][5]

In 2021, WH Group ranked 3rd on FBIF's Top 100 Chinese Food & Beverage Companies list.[6]

Wan Long is the chairman and chief executive officer of WH Group. Kenneth M. Sullivan, the president and chief executive officer of Smithfield Foods

History

Shuanghui was founded by the Luohe municipal government in 1958 with a single processing plant. Wan Long joined the plant in 1968, and became the plant's general manager by 1984.[1] Under Wan, the company has expanded aggressively. In his first year, he turned around a struggling company, bringing it from a net loss to a net profit of 5 million yuan ($1.7 million).[4]

In 1992, sausage sales fueled the expansion of the company which in turn resulted in investors from six countries founding Shuanghui International.[10]

The company introduced its first branded meat product to the market in February 1992. Later that year, Shuanghui formed a joint venture with 16 institutional investors from six countries.[2] In 1994, the venture was consolidated as Shuanghui Group.[11] Shuanghui subsidiary Henan Shuanghui Investment & Development Company Limited (szse: 000895) was established and listed on the Shenzhen Stock Exchange in 1998.[12] In 2000, Shuanghui started a post-secondary educational-work research division.[2]

By 2006, Shuanghui was the largest food processor in China by corporate valuation, and 131st largest company overall. The company was valued at $1.3 billion, and controlled more than 50% of China's high-temperature processed meat market at that time.[11] That year, Luohe government sold its share of Shuanghui to a joint venture of Goldman Sachs and private equity firm CDH Investments.[13] Goldman Sachs later sold most of its share, reportedly for a large profit,[9] but owned 5.2% of the company as of May 2013.[14] Wan Long was appointed chairman of the company on 16 October 2007.[1]

In 2011, the firm set up a sales operation in Japan.[10]

Acquisition of Smithfield Foods

In May 2013, Shuanghui announced its intention to buy Smithfield Foods for $34 per share, or about US$4.72 billion total. Including assumed debt, the total value of the deal was about $7.1 billion. The agreed purchase price represented a 31% premium over Smithfield's market price at the time when the deal was announced.[8] The two sides negotiated for four years prior to their agreement.[9]

Before it was finalized, the deal had to be approved by Smithfield shareholders and the Committee on Foreign Investment in the United States.[8] It was ultimately approved by Smithfield shareholders on 24 September 2013, and the merger was to be completed two days later.[15]

Smithfield CEO Larry Pope stated the deal would "[preserve] the same old Smithfield, only with more opportunities and new markets and new frontiers."[8]

native name	万洲国际
type	Public
traded as	sehk: 288 HSI component
foundation	1958
location city	Hong Kong
key people	Wan Long (chairman)
industry	Food
products	Meat
revenue	US$24.1 billion
num employees	101,000
subsid	Henan Shuanghui Investment & Development Smithfield Foods
homepage	WH Group Shuanghui Development

Operations

History

Acquisition of Smithfield Foods

See also

External links

References