Dean
MAJOR DEALS SECURED
WITH RABOBANK
Smifh/ield
Efficiency Project
setfor next pnase
Americas
SOLAR PANELS
ON RETAIL
BANK BRANCH
IN CALIFORNIA
Americas
Europe
Two significant financing deals for US
Food and Agribusiness (F&A) com-
panies were successfully completed,
thanks to the significant involve-
ment of Rabobank in a top-tier role.
Smithfield Foods refinanced its busi
ness with the support of Rabobank
in a top-tier role, and Dean Foods
acquired Alpro in the first transaction
completed underthe Rabobank-
Rothschild cooperation.
Smithfield Foods, a global integrated
pork business, closed refinancing
agreements in July designed to raise
nearly USD 2 billion in senior secured
debt capital commitments with
maturities through 2012 and beyond.
Rabobank North America played a
top-tier role in this financing initiative
through the joint efforts of the Dallas
Corporate Banking office, DCM-Syndi-
cations and Rabo Securities.
Since 2007, Rabobank Dallas has
explored with Smithfield ways to
leverage the strength of Rabobank's
triple A rating, global F&A commit-
ment, balance sheet, and financial
Rabobank N.A. has installed solar
panels on its retail bank branch in
Santa Maria, California, as part of
its effort to implement sustainable
FOODS
product suite. Throughoutthe
capital-raising effort finalised in July,
Smithfield CEO Larry Pope noted
these Rabobank attributes as being
well aligned with Smithfield's inte
grated pork focus, global foot-print
and financial needs. Smithfield, a USD
12 billion sales company, has a track
record of successful growth in the
US, Mexico and Europe, and a 20-year
relationship with Rabobank.
A European focus was integral to
the second major US financing deal,
which allowed Dean Foods to re-enter
the European market with its acquisi-
tion of Alpro. Dean Foods, a leading
US food and beverage company,
acquired 100 percent of Alpro in June
for approximately EUR 325 million,
with Rabobank and Rothschild acting
jointly as financial advisors. Alpro is
the European leader in branded soy-
based drinks and foods, and the deal
will allow Dean Foods to expand its
soy products to Europe.
business practices, both externally
and internally. The branch in Santa
Maria is the first to be retrofitted
with solar panels, and the goal is
for all future retail branches that
Rabobank builds in California to
feature 'green' infrastructure and
operating elements.
The European Efficiency Project has completed an
ambitious first stage and is poised to enter its next phase.
The project aims to improve cost/income ratio in Europe
through better use of resources and systems, and by
aligning booking and reporting policies.
The Efficiency Project was launched in November 2008,
following approval by the Managing Board of Rabobank
International (MBRI). lts first phase focused on the four
European branches - Paris, Milan, Frankfurt and Madrid -
that operate the Flexcube back office system.
Phase two of the Efficiency Project will concentrate on
transferring the London and Antwerp corporate lending
books from their local systems into Flexcube. This is
scheduled for the second half of 2009 and first half of 2010.
Former Regional Manager Europe and MBRI member
Rutger Schellens said: 'The branches affected by the
Efficiency Project have expressed their overall satisfac-
tion with the services provided by the European Service
Centre (ESC). So far, the project has delivered on all its
commitments, despite the tight deadlines and complex-
ity of the tasks involved."
The process of stabilisation in the ESC will continue during
2009, with the focus on building synergies and preparing
for the migration of additional branches and offices. As
well as shorter-term gains, the project will bring long-term
benefits, according to Fernando Fernandez de Santaella,
Efficiency Project Implementation Manager.
Fernando said: "By shifting the focus of Europe's branches
away from administration to business development and
the pan-European Food and Agribusiness strategy, we're
creating the right environment in which to generate
increased cross-sell and improved profitability."
issue 2i THE WORD 5