Smithfield Foods (SFD) agreed to buy Premium Standard Farms (PORK) in a deal worth about $693 million.

Each share of Premium Standard will be acquired for 0.678 Smithfield shares and $1.25 in cash. The total combined value is $21.35. Premium Standard closed Friday at $17.73, and the stock has traded in range of $13.25 to $19.47 in the past year.

Additionally, Smithfield plans to assume around $117 million in Premium Standard debt. Shares of Smithfield last closed at $29.24.

Smithfield markets fresh pork and processed meats. Premium Standard is the nation's second-largest pork producer and sixth-biggest pork processor.