Brazilian meat producer JBS has announced it will sell US-based Five Rivers Cattle Feeding to Pinnacle Asset Management in a $200 million deal.
Five Rivers Cattle Feeding supplies JBS with beef for its US processing plants, and this arrangement will continue after the transaction has been completed.
Five Rivers operates 11 cattle feeding facilities throughout the US, which have a combined feeding capacity of 900,000 head of cattle.
JBS stated that it would sell the cattle feeding business last year, as part of a $1.8 billion divestment programme.
Andre Nogueira, CEO of JBS USA said: “The sale of the Five Rivers Cattle Feeding assets and farms is a strategic move that will allow JBS USA to more efficiently deploy working capital and focus on the company’s core food and value-added products businesses.
“The transaction concludes the Divestment Program previously announced and unanimously approved by the JBS S.A. board of directors, and more favourably positions the company for future opportunities.
The long-term partnership with Pinnacle will ensure JBS USA’s continued ability to produce high-quality beef products, including natural, certified humane, raised without antibiotics, source-verified and traditional products, enjoyed by customers and consumers around the world.”
Jason M. Kellman, managing partner and Chief Investment Officer of Pinnacle Asset Management said: “The acquisition of the largest and most respected cattle feeding operation in the world continues Pinnacle’s strategic path of investment and development of our diversified, global, physical commodity platform, of which livestock is a critical sector.”
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