The deal was concluded by Marfrig Global Food’s indirect subsidiaries, which form part of National Beef. As part of the transaction, the Brazilian firm undertook 51% shares of Iowa Premium for US$76.5m, while the rest of deal was finalised by National Beef.
Marfrig Global Foods acquired 51% of National Beef’s membership interests last year in a deal worth US$969m.
Marfrig CEO Eduardo Miron said: “This joint transaction with the other shareholders of National Beef demonstrates our commitment to sustainable growth and is an opportunity to increase our interest in the North America operation.”
Previously owned by US foodservice firm Sysco, Iowa Premium is headquartered in Tama, Iowa and has a daily processing capacity of 1,100 head of Black Angus cattle. The business also has annual sales of US$650m.
Marfrig’s North American operation and National Beef CEO Tim Klein said Iowa Premium fit “perfectly” with its value-based marketing strategy and looked forward to strengthening relationships with farmers who produce Black Angus cattle in the US.
Along with the acquisition of Iowa Premium, Marfrig has also entered into a “long-term” supply agreement with Sysco.