March 13, 2006

US Premium Beef to acquire Brawley Beef

National Beef Packing Company and its majority owner, US Premium Beef (USPB) on Friday (Mar 10) announced that USPB had entered into a non-binding letter of intent to acquire Brawley Beef.

The announcement said the beef packers expect to enter into a definitive agreement following due diligence. The plan calls for National Beef to own and operate Brawley. Additional terms were not disclosed.

Brawley Beef is an alliance of cattle producers in Arizona and California who supply its meat packing operations with more than 400,000 animals a year, the announcement said. The company produces upscale custom cuts to retail customers.

Brawley Beef was formed by its suppliers in 2001 and operates in Brawley, California, with a new up-to-date processing facility, the release stated.

National Beef is the fourth largest beef processing company in the US. National Beef processes, packages and delivers fresh beef for sale to customers in the US and international markets. Its products include boxed beef and value-added products including branded boxed beef, case-ready beef and pork, chilled export beef and portion-control beef.

US Premium Beef processes about 12 percent of the US fed beef supply at its plants in Liberal and Dodge City, Kansas. More than 2,000 producers from 33 states have joined USPB to market cattle on the company's grid pricing system.

Beef products from USPB member cattle are marketed under numerous brand names including National Black Angus Beef, Black Canyon Angus Beef, Certified Premium Beef, Naturewell Natural Beef, Certified Angus Beef, Certified Angus Beef Prime and Certified Hereford Beef.