21 January, 2020 - 24 January, 2020
21 January, 2020 -
21 January, 2020 - 22 January, 2020
New York NY, U.S
27 January, 2020 - 29 January, 2020
29 January, 2020 - 30 January, 2020
New York NY, U.S
JBS USA announced on January 17 that it entered into an agreement to sell its Five Rivers Cattle Feeding’s feedlot operations in the U.S.
The operations are to be sold to affiliates of Pinnacle Asset Management for approximately US$200 million, including the market value of silage and grain inventories at closing, and subject to adjustments by working capital variation also at closing. Coupled with the acquisition of Five Rivers U.S.’s shares, the buyer will sign a long-term contract to supply cattle to JBS in North America, according to the Brazil headquartered meat processor.
The agreement is part of the meatpacking giant’s ‘Divestment Program’, which was unanimously approved by its board of directors in June 2017. The conclusion of the transaction is said to be subject to the usual regulatory approvals and adjustments, including corporate approvals, the buyer securing the relevant funding and approval by U.S. antitrust authorities. JBS says it will use a portion of the proceeds to further reduce its debt in Brazil.
The sale of the majority of the assets comprised by the Divestment Program was concluded in 2017. In July 2017, the Company entered into an agreement to sell the Five Rivers Cattle Feeding feedlot operations in Canada for approximately US$40 million and, later in September, Moy Park was sold to Pilgrim’s Pride Corporation, controlled by JBS, for approximately £1 billion (US$1.38 billion). In the following October, JBS also concluded the sale of its shareholding interest in dairy producer Vigor Alimentos to Mexican Group Lala. In addition, JBS sold its beef operations in Argentina, Paraguay and Uruguay, for about US$300 million.