April 24, 2012

JBS may acquire Independencia Group at US$142 million

JBS-the largest animal protein processor in the world-delivered a non-binding proposal to acquire the assets of the Independencia Group for the total amount of BRL$268 million, or US$142 million.

The proposal covers assets including four beef processing plants (slaughter and deboning) at Nova Andradina, Campo Grande, Senador Canedo and Rolim de Moura (Midwestern Brazil); two hide processing facilities in Nova Andradina and Colorado D´Oeste and two storage and distribution centers in Cajamar and Santos (Sao Paulo); and all brands owned by Grupo Independencia.

Under the proposal, JBS will not take on any financial, fiscal or labor contingencies or any other liabilities, the totality of the proposal having a ceiling of BRL$268 million.

The proposal carries a number of conditions some of which are its approval at the General Assembly of Independencia creditors as well as at the Board of JBS SA.