November 3, 2015
Meat producer JBS acquires Cargill's US pork unit
Brazilian meat producer JBS SA has announced its US subsidiary had concluded a deal to acquire for US$1.45-billion the Cargill Meats stake in Cargill Pork LLC in the US.
It said the purchase includes:
Marty Dooley, president and COO of JBS USA Pork, said the acquisition "signifies a strengthening of our pork business through the combination of our established track record of adding value for our customer base and Cargill's complementary specialty-product offerings, including bacon, antibiotic-free and sow housing production system options".
90,000 hogs per day
The Cargill Pork acquisition, combined with the JBS Pork business in the US, has pro forma net revenue of around $6.3 billion, and a processing capacity of 90,000 hogs per day and 2 million pounds of bacon per week, JBS said.
"This acquisition is fully aligned with JBS' strategy to grow our portfolio of prepared and value-added products, further expanding our company's customer base and enhancing our premium pork product mix," said Wesley Batista, Global CEO of JBS.
JBS said its acquisition had been approved by the antitrust authorities including the US Department of Justice.
JBS USA, which represents the North American arm of JBS SA, is a leading processor of beef, pork and lamb in the US, a leading processor of beef in Canada and the largest cattle feeder in the world with operations in the US and Canada. It is also a majority shareholder of Pilgrim's Pride Corp., the second-largest poultry company in the US. --Rick Alberto