JBS USA completes Cargill Pork purchase
The completed acquisition includes two pork processing facilities in Ottumwa, Iowa and Beardstown, Illinois; five pork feed mills; and four hog farms in Arkansas, Oklahoma and Texas.
The company said it had obtained the necessary regulatory approvals from the competent antitrust authorities, including the Department of Justice in the US, to conclude the transaction without restrictions.
“Today’s announcement 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 speciality-product offerings, including bacon, antibiotic-free and sow housing production system options,” said Martin Dooley, president and chief operating officer, JBS USA Pork.
The total amount paid was approximately $1.45 billion, on a debt-free, cash-free basis, adjusted at closing by the net working capital variation and long-term liabilities of Cargill Pork.
The Cargill Pork acquisition, combined with the existing JBS Pork business in the US, has net revenue of approximately $6.3bn, and a processing capacity of about 90,000 hogs per day and two million pounds of bacon per week.
“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,” stated Wesley Batista, global chief executive of JBS.
