Smithfield Foods principal shareholder to sell 19.5 million shares

SMITHFIELD, Va. - Smithfield Foods, Inc. (NASDAQ:SFD), currently trading at $24.23 and showing strong market performance with a 26.94% gain year-to-date, announced Thursday that its principal shareholder, SFDS UK Holdings Limited, has priced a secondary public offering of 19,531,698 shares of common stock at $23.25 per share.

The selling shareholder has also granted underwriters a 30-day option to purchase up to 2,929,754 additional shares at the same price, less underwriting discounts and commissions.

Smithfield Foods, an American food company specializing in packaged meats and fresh pork products with a market capitalization of $10.03 billion and annual revenue of $14.84 billion, will not sell any shares in the offering and will not receive any proceeds from the sale. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.26 out of 4.

The offering is expected to close on September 8, 2025, subject to customary closing conditions.

Morgan Stanley, BofA Securities and Barclays are serving as joint lead book-running managers for the offering, while Goldman Sachs & Co. LLC, Citigroup and BNP Paribas are acting as joint book-running managers.

The offering is being made through a prospectus filed with the U.S. Securities and Exchange Commission.

Smithfield Foods, which trades on the Nasdaq exchange, describes itself as having a leading position in packaged meats and fresh pork products in the American food market.

This report is based on a press release statement issued by the company.

In other recent news, Smithfield Foods has reported strong financial results for the second quarter of 2025. The company achieved consolidated sales of $3.8 billion, reflecting an 11% increase compared to the previous year. Additionally, Smithfield Foods’ adjusted operating profit rose to $298 million, marking a 20.1% year-over-year growth. In light of these results, UBS raised its price target for Smithfield Foods to $28.50 from $25.00 while maintaining a Buy rating. The earnings per share stood at $0.55, meeting Street expectations and surpassing UBS’s estimate of $0.49.

Furthermore, Smithfield Foods announced that its principal shareholder, SFDS UK Holdings Limited, will sell 16 million shares of common stock in a secondary public offering. The shareholder also plans to grant underwriters a 30-day option to purchase up to an additional 2.4 million shares. These developments come amid a challenging consumer spending environment, yet the company has demonstrated resilience in its financial performance.

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