Marfrig-owned National Beef has acquired Iowa Premium for $150 million, in a move to further expand its operations in North America.
Headquartered in Tama, Iowa Premium has a daily processing capacity of 1,100 head of cattle and was previously owned by Sysco.
Marfrig bought a 51% stake in Missouri-based National Beef last year for $969 million. The Iowa Premium transaction will see the Brazilian meat firm invest $76.5 million.
With the transaction, shares in Iowa Premium will be incorporated into the capital of National Beef. With annual sales of approximately $650 million, Iowa Premium operates using only black Angus cattle.
Along with the acquisition, a long-term supply agreement has been signed with Sysco.
Marfrig Global Foods 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.”
Tim Klein, CEO of National Beef and of Marfrig’s North America operation, said: “I am excited to expand our beef operations with a processing facility in Iowa and we look forward to strengthening the relationships with the family farmers who produce the highest quality black Angus cattle in the US.
“Iowa Premium fits perfectly with our value-based marketing strategy as the company continues to provide customers with the very best beef products and programmes.”
Stan Inville, CEO of US Premium Beef, which holds a minority stake in National Beef, said: “The joint investment in Iowa Premium is a great opportunity for National Beef and for us to continue producing high-quality beef for our customers. We are happy to be part of this long-term journey with Marfrig and the other partners of National Beef.”
© FoodBev Media Ltd 2019
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