Leucadia acquiring ownership interest in Nati...

Leucadia acquiring ownership interest in National Beef

Leucadia National Corporation announced that it has entered into a membership interest purchase agreement with National Beef Packing Company, LLC and its members.

Leucadia will acquire 78.95% of National Beef for a net aggregate cash purchase price of US$867.9 mill. to be paid from Leucadia's available cash and investments.

National Beef is one of the largest beef processing companies in the Unites States. The company processes, packages and delivers fresh and frozen beef and beef by-products for sale to customers in the U.S. and international markets. The product range includes boxed beef, ground beef, hides, tallow and other beef and beef by-products. In addition, National Beef sells value-added beef products including branded boxed beef, case-ready beef, portion control beef and further processed hides. The company markets its products to retailers, food service providers, distributors, further processors and the U.S. military.

The current owners of National Beef, U.S. Premium Beef, LLC, NBPCo Holdings, LLC and Timothy Klein, National Beef's Chief Executive Officer, will continue as minority owners of National Beef after consummation of the transaction.

Completion of the transactions contemplated by the purchase agreement is subject to certain customary closing conditions, including, among other things, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and approval by the members of USPB. The board of directors of USPB has approved the purchase agreement and has agreed to recommend that USPB's members approve the transaction.

Leucadia expects to complete the transactions by the end of 2011 and anticipates that following consummation of the transaction, National Beef will continue to operate in the same manner and with the same management as is currently in place.

Leucadia also announced that its Board of Directors has declared a cash dividend equal to US$0.25 per Leucadia's common share payable on December 30, 2011 to record holders of Leucadia common shares on December 16, 2011.
Source: Leucadia National Corporation