|
|
|
U.S. Premium Beef, LLC, announces agreement to sell National Beef Packing Company, LLC to JBS S.A.U.S. Premium Beef, LLC and National Beef Packing Company, LLC, March 4 announced that they have entered into a Membership Interest Purchase Agreement with JBS S.A. under which JBS will acquire all of the outstanding membership interests of National Beef. Under the terms of the agreement, JBS will pay the members of National Beef total proceeds of approximately $465 million cash and $95 million in JBS common stock. In addition, JBS will assume all of National Beef's debt and other liabilities at closing. The sale will combine all of National Beef's operations and facilities, including National Carriers, Inc., and its ownership in Kansas City Steak Company, LLC with JBS Swift's beef operations. National Beef President Tim M. Klein will become President and Chief Operating Officer of the joint National Beef/JBS-Swift beef operations. "This transaction will enable our company to become a part of a leading multinational food company," Steve Hunt, CEO of USPB, said in making the announcement. "Being able to diversify through JBS will put our company in a position to compete long term in an increasingly competitive environment. Additionally, as part of JBS, we will be in a strong position to grow USPB's successful integrated strategy. Our producer owners and other producers who market cattle through USPB will now have a more geographically diversified company with multiple locations to deliver the high quality cattle they produce for our value-added programs. This opportunity will establish a solid platform for future company growth." John R. Miller, CEO of National Beef, added that the combined operations will have the ability to better meet the growing needs of customers both domestically and internationally. "This strategic combination will allow both companies to better utilize resources and management talent to compete in an increasingly difficult world protein arena," Miller noted. "JBS's worldwide reach and its reputation for efficient operations will enable National Beef to participate in opportunities heretofore unavailable to us. We look forward to working with the management team of JBS to create a premier red meat company." "We are thrilled to be able to have National Beef become part of our North American beef processing operations," Wesley Batista, CEO of JBS USA, Inc., said. "National Beef's reputation for efficiently producing high quality beef and for serving its customers is recognized worldwide. We are looking forward to working with its management and employees to expand our business in the United States and internationally. National Beef is an industry leader in value added fresh beef in the United States and is also a leading U.S. exporter of fresh chilled and frozen beef to Japan--both of which are strengths that will complement our business plan for growth in beef processing in the United States and especially the Pacific Rim." The transaction is subject to certain conditions and will require customary regulatory approvals. U.S. Premium Beef, LLC is the majority owner of National Beef Packing Company, LLC, a leading U.S. beef processor. More than 2,100 producers from 36 states have marketed cattle on USPB's quality-based grids. These high quality cattle are the foundation of National Beef's value-added product lines and have enabled it to be a leader in branded product programs for both domestic and international markets. More information about USPB is available at www.uspremiumbeef.com. National Beef Packing Company, LLC, based in Kansas City, Mo., has operations in Liberal and Dodge City, Kan.; Brawley, Calif.; Hummels Wharf, Penn.; Moultrie, Georgia and Kansas City, Kan. National Beef processes and markets fresh beef, case-ready beef and beef byproducts for domestic and international markets. In fiscal year 2007, National Beef generated sales of $5.6 billion and processed 3.9 million head of cattle. More information about National Beef is available at www.nationalbeef.com. JBS S.A. is a public company with its shares listed on BOVESPA's Novo Mercado under the symbol JBSS3. JBS operates 23 plants in Brazil and 6 in Argentina in addition to its operations in Australia and the United States resulting from the purchase of Swift and Company last year. In the year ending September 2007, JBS generated pro forma net revenue of $11.9 billion and processed 9.0 million head of cattle. More information about JBS S.A. is available at www.jbs.com.br/ir/. 3/17/08 Date: 3/12/08 Advertisement
Copyright/Privacy
Copyright 1995-2009. High Plains Publishers, Inc. All rights reserved. Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com |
Market Snapshot Inside Futures |
