WH Group
| Company type | Public |
|---|---|
| Industry | Meat and food processing |
| Founded | 1958 |
| Founder | Municipal government of Luohe |
| Headquarters | Hong Kong , China |
Area served | Worldwide |
Key people | Wan Long (Chairman and CEO), Kenneth M. Sullivan (Executive Director) |
| Products | Meat products, hog farming, flavor enhancement, supply chain logistics |
Number of employees | 101,000 (2019) |
WH Group (), previously known as Shuanghui Group (), is a Chinese multinational enterprise specializing in meat and food processing, publicly listed and headquartered in Hong Kong. In certain regions, it operates under the name Shineway Group. WH Group's business activities include hog farming, production of consumer meat products, flavor enhancement, and supply chain logistics. It holds the distinction of being the largest meat producer within China.
In 2021, WH Group secured the 3rd position on FBIF's ranking of the Top 100 Chinese Food & Beverage Companies.
Wan Long currently holds the roles of chairman and CEO at WH Group. Kenneth M. Sullivan, who is president and CEO of Smithfield Foods, joined WH Group’s board as an executive director in January 2016.
Operations
Shuanghui manages 13 manufacturing plants with an annual meat output exceeding 2.7 million tons. The company processes over 15 million pigs yearly, directly raising approximately 400,000 while procuring the rest from external suppliers. It possesses more than 500 patents and markets close to 1,000 different products. As of May 2013, Zhijun Yang was appointed managing director. By 2019, Shuanghui employed around 101,000 individuals and had a workforce ownership stake of roughly 30%.
History
Established in 1958 by the municipal government of Luohe with a single processing facility, Shuanghui experienced substantial expansion under Wan Long’s leadership after he joined in 1968 and became general manager in 1984. In his initial year as general manager, Wan reversed losses to achieve a profit of 5 million yuan (approximately $1.7 million).
In 1992, buoyed by robust sausage sales, investors from six countries formed Shuanghui International. That same year marked the launch of the company’s first branded meat product and the creation of a joint venture involving sixteen institutional investors from these nations. By 1994, this joint venture was consolidated into Shuanghui Group. Its subsidiary, Henan Shuanghui Investment & Development Company Limited (), was publicly listed on the Shenzhen Stock Exchange in 1998. In 2000, Shuanghui established an educational and research division focused on post-secondary studies.
By 2006, Shuanghui had become China’s leading food processor by corporate valuation and ranked 131st among all national companies, valued at $1.3 billion while controlling more than half of China’s market for high-temperature processed meats. That year also saw the Luohe government divest its shares to a joint venture between Goldman Sachs and private equity firm CDH Investments. Goldman Sachs later reduced its holdings but maintained a 5.2% stake as of May 2013. Wan Long was appointed chairman on October 16, 2007.
In 2011, Shuanghui broadened its international reach by launching sales operations in Japan.
Acquisition of Smithfield Foods
In May 2013, Shuanghui revealed its intention to purchase Smithfield Foods at $34 per share, amounting to approximately US$4.72 billion, with the total transaction valued near $7.1 billion when including assumed debt. This offer represented a 31% premium compared to Smithfield's stock price at the time of the announcement. The two companies had engaged in negotiations spanning four years prior to this agreement.
The transaction required consent from Smithfield's shareholders as well as approval from the Committee on Foreign Investment in the United States. Shareholders gave their endorsement on 24 September 2013, with the deal finalized two days later.
Smithfield CEO Larry Pope highlighted that the acquisition would maintain Smithfield’s existing operations while enabling access to new markets, especially facilitating exports of American pork to China amid increasing demand driven by food safety concerns. The company’s leadership and employee base largely remained intact following the acquisition. Analyst Derek Scissors observed that Shuanghui aimed to capitalize on U.S. operational strengths rather than disrupt the marketplace. Since 2008, China has been a net importer of pork.
This acquisition marked the largest takeover of a U.S. firm by a Chinese company, effectively doubling the number of U.S. jobs associated with Chinese investments. Following completion, Smithfield was delisted from public trading.
In July 2013, Shuanghui announced plans to list Smithfield on the Hong Kong Stock Exchange, anticipating a valuation close to $4 billion; however, this initial public offering was ultimately withdrawn in 2014.
In January 2014, Shuanghui International adopted the new corporate identity WH Group, while its subsidiary Henan Shuanghui Investment continued using the original brand name. The rebranding to WH Group symbolizes "Wanzhou Holdings," representing concepts of eternity and global reach.
To bolster its financial position and support strategic acquisitions, Smithfield divested its 37% holding in Spanish meat processor Campofrío Food Group to Mexico’s Alfa Group for $354 million in June 2015.
WH Group experienced profit growth exceeding 17% in 2016, largely fueled by Smithfield Foods’ performance.
During that year, Smithfield expanded its portfolio by acquiring California-based Clougherty Packing from Hormel Foods for $145 million. This acquisition brought brands such as Farmer John and Saag's Specialty Meats under Smithfield’s umbrella, broadening its pork product offerings and distribution capabilities throughout the southwestern United States. It also included hog farming operations located in Arizona, California, and Wyoming.
In 2017, Smithfield completed the purchase of the remaining 66.5% stake in Pini Polonia, converting it into a fully owned subsidiary. Pini Polonia operates a slaughterhouse in Poland along with production facilities in Italy and Hungary; the acquisition encompassed entities including Pini Polska, Hamburger Pini, and Royal Chicken.
By March 2020, WH Group reported that the COVID-19 pandemic had only a limited effect on its operations and sales across both U.S. and Chinese markets, with approximately 95% of business activities restored to normal levels.