JBS acquires Tasman Group, Smithfield and National Beef

by Editor fleischwirtschaft.com
Thursday, March 06, 2008

U.S. Premium Beef and National Beef Packing Company announced that they have entered into a membership interest purchase agreement with JBS S.A., Brazil.

JBS will acquire all of the outstanding membership interests of National Beef paying approximately $465 million cash and $95 million in JBS common stock. In addition, JBS will assume all of National Beef’s debt and other liabilities at closing. The transaction requires regulatory and other approvals.

The sale will combine all of National Beef’s operations and facilities, including National Carriers, Inc. and its ownership in Kansas City Steak Company, LLC with JBSSwift’s beef operations. National Beef President Tim M. Klein will become President and Chief Operating Officer of the joint National Beef/JBS-Swift beef operations.

Executives of JBS, National and U.S. Premium all said in statements that the proposed transaction would help all three companies operate more efficiently.

National Beef Packing Company, LLC, based in Kansas City, processes and markets fresh beef, case-ready beef and beef byproducts for domestic and international markets. In fiscal year 2007, National Beef generated sales of $5.6 billion and processed 3.9 million head of cattle.

JBS operates 23 plants in Brazil and 6 in Argentina in addition to its operations in Australia and the United States resulting from the purchase of Swift and Company last year. In the year ending September 2007, JBS generated pro forma net revenue of $11.9 billion and processed 9.0 million head of cattle.

JBS has also announced its acquisition of the Australian Tasman Group, which is the nation’s largest multi-species processor, accounting for about 6% of all red meat production in Australia.

Furthermore, JBS has acquired Smithfield Foods, Inc.’s beef business making JBS SA the largest beef processor in the United States.