World’s leading beef producer based in Brazil

by Editor
Thursday, May 31, 2007

J&F Participações S.A., controlling shareholder of JBS S.A., announced an Agreement and Plan of Merger aiming the acquisition of the share control of Swift Foods Company.

Latin America's largest beef processor JBS S.A., maker of Brazil's Friboi meat brand, has agreed to acquire America's third-largest beef and pork processor, creating the world’s leading beef producer and the largest Brazilian company in the food industry.

J&F will acquire Swift taking into account an enterprise value of approximately $1.4 billion which includes about $225 million for the Colorado-based meat packer Swift & Co.

With this acquisition, JBS-Friboi is seeking to get access to lucrative markets in the United States and Asia. Especially the Japanese and South Korean markets, which have banned Brazilian beef products on fears of foot and mouth disease, shall be reached through Swift's U.S. and Australian holdings.

The completion of the operation is expected to occur around July, 2007.