May 30, 2007

Brazil's Friboi buys Swift for US$1.4 billion

Brazilian meat packer JBS S.A. (JBSS3.BR), which controls leading beef exporter Friboi, has purchased Swift Foods Co., the third largest US processor of beef and pork, for US$1.4 billion, JBS said Tuesday in a statement.

JBS said the deal is expected to be concluded in July.

The deal was conducted via the JBS overseas arm called J&F Acquisition Co with legal advisor by Rothschild Inc in the process.

According to a source, JBS has already obtained an authorization to contract a bridge loan to finance the acquisition. The loan would come from a group of five banks: Banco do Brasil, Citigroup, Santander, Rotschild and UBS.

JBS is the largest producer of beef and beef by-products in Latin America, and also one of the biggest beef exporter in the world.

On Monday, the company's shares closed at 7.31 Brazilian Reals (US$3.76) on the Bovespa (Sao Paolo Stock Exchange).