JBS S.A Assumes Premium Beef in Global Spread
KANSAS CITY, US - Premium Beef, LLC (USPB) and National Beef Packing Company, LLC (National Beef) today announced that they have entered into a Membership Interest Purchase Agreement with JBS S.A. (JBS) under which JBS will acquire all of the outstanding membership interests of National Beef.
5 March 2008
2 minute read
Under the terms of the agreement, JBS will pay the members of National Beef total proceeds of approximately US$465 million cash and US$95 million in JBS common stock. In addition, JBS will assume all of National Beef’s debt and other liabilities at closing.
The sale will combine all of National Beef’s operations and facilities, including National Carriers, Inc. and its ownership in Kansas City Steak Company, LLC with JBSSwift’s beef operations. National Beef President Tim M. Klein will become President and Chief Operating Officer of the joint National Beef/JBS-Swift beef operations.
* "This strategic combination will allow both companies to better utilize resources and management talent to compete in an increasingly difficult world protein arena,” Miller noted." |
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John R. Miller, CEO of Nationa l Beef
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“This transaction will enable our company to become a part of a leading multinational food company,” Steve Hunt, CEO of USPB, said in making the announcement.
“Being able to diversify through JBS will put our company in a position to compete long term in an increasingly competitive environment. Additionally, as part of JBS, we will be in a strong position to grow USPB’s successful integrated strategy. Our producer owners and other producers who market cattle through USPB will now have a more geographically diversified company with multiple locations to deliver the high quality cattle they produce for our value-added programs. This opportunity will establish a solid platform for future company growth.”
John R. Miller, CEO of Nationa l Beef, added that the combined operations will have the ability to better meet the growing needs of customers both domestically and internationally. “This strategic combination will allow both companies to better utilize resources and management talent to compete in an increasingly difficult world protein arena,” Miller noted. “JBS’s worldwide reach and its reputation for efficient operations will enable National Beef to participate in opportunities heretofore unavailable to us. We look forward to working with the management team of JBS to create a premier red meat company.”
“We are thrilled to be able to have National Beef become part of our North American beef processing operations,” Wesley Batista, CEO of JBS USA, Inc., said. “National Beef’s reputation for efficiently producing high quality beef and for serving its customers is recognized worldwide.
We are looking forward to working with its management and employees to expand our business in the United States and internationally. National Beef is an industry leader in value added fresh beef in the United States and is also a leading U.S. exporter of fresh chilled and frozen beef to Japan—both of which are strengths that will complement our business plan for growth in beef processing in the United States and especially the Pacific Rim.”
TheCattleSite News Desk
