July 3, 2015

 

JBS USA Pork to buy Cargill's US pork business

 

 

      

 

JBS USA Pork has entered into an agreement with Cargill to acquire the company's US-based pork business for US$1.45 billion.

 

According to Martin Dooley, president and COO of JBS USA Pork, the purchase is a strategic investment in the long-term growth of JBS's domestic and global pork business and demonstrates its continued commitment to the US livestock sector.

 

"This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers. The strength and success of Cargill's pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base," explained Dooley.

 

Included in the acquisition are two Midwest meat processing plants, one in Ottumwa, Iowa, and the other at Beardstown, Illinois. In 2014 they processed a total of 9.3 million hogs. The purchase by JBS also includes five feed mills (two in Missouri, and one each in Arkansas, Iowa and Texas), and four hog farms (two in Arkansas and one each in Oklahoma and Texas).

 

Completion of the acquisition is subject to regulatory review and approval.

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