JBS to acquire Cargill’s pork businesses for $1.45bn

Brazil-based meat packer JBS’ US unit Swift Pork will acquire the pork business of Cargill for $1.45bn.

As per the contract, JBS will acquire two Midwest meat processing plants located in Ottumwa, Iowa, and Beardstown, Illinois, apart from five feed mills and four hog farms.

Both the plants, that processed a total of 9.3 million hogs in 2014, had been acquired by Cargill in 1987.

JBS USA Pork president Martin Dooley said: "This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers.

"The strength and success of Cargill’s pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base."

JBS’ 2007 acquisition of Swift & Company marked its entry into the US pork market. Currently, the company processes more than 50,000 hogs at processing facilities in Iowa, Minnesota, and Kentucky.

Cargill senior vice-president Todd Hall said: "The strengths of the JBS and Cargill pork businesses are complementary. Together, they promise to offer enhanced service to customers and more opportunities for employees and hog producers, while providing an important source of protein to consumers around the world.

"The professional and focused manner in which JBS approached Cargill demonstrated to us that they place a great deal of value on growing this part of their company to better compete in the marketplace and are willing to invest in its future."

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Image: JBS will acquire two Midwest meat processing plants located in Iowa and Illinois. Photo: courtesy of amenic181/ freedigitalphotos.net.