July 13, 2007

Brazil's JBS completes Swift acquisition

The Brazilian meat processor finished its acquisition takeover of US meat packer Swift and Co., in what seem to become the world's biggest beef processor, the companies said on Thursday (July 12).

Company executives said JBS S.A. bought Swift from private equity firm HM Capital Partners LLC of Dallas and Vail-based Booth Creek Management Corp. in a cash agreement worth about US$1.5 billion.

Swift, based in Greeley, Colorado is the third-largest US processor of beef and pork and was the highly-sought firm after it has been put to sale in the wake of US industry consolidation. It has plants in six states and an operation in Australia.

JBS is the largest beef processor in Latin America with 23 plants in Brazil and six in Argentina with earnings of US$1.8 billion last year.

Through the consolidated JBS Swift Group, JBS will gain access to global markets, particularly in Asia, where imports of beef are strictly regulated due to fears of mad cow disease.

Last month, Swift said its chief executive Sam Rovit will be replaced by Wesley Mendonca Batista, executive director of operations for JBS after the deal is closed.