JBS USA announced a definitive share purchase agreement with Danish Crown A/S to acquire the company’s U.S.-based bacon, ham and deli meat business, Plumrose USA, for US$230 million. It is anticipated that the proposed transaction would close during the second quarter of 2017, subject to regulatory review and approval, and customary closing conditions.
“Plumrose USA is a well-respected business with an outstanding professional team, a strong portfolio of branded, cooked and prepared foods, and first-class, well-invested assets in strategic geographic locations that complement our current business structure,” said Andre Nogueira, CEO, JBS USA Food Company in a press release. “We are excited to welcome the more than 1,200 dedicated team members of Plumrose USA to JBS and look forward to building on the legacy of high quality products and outstanding service established by Danish Crown.”
The acquisition includes five prepared foods facilities, including one in Elkhart, Indiana, USA, two in Council Bluffs, Iowa, USA, one in Booneville, Mississippi, USA, one in Swanton, Vermont, USA and two distribution centers in South Bend, Indiana, USA and Tupelo, Mississippi, USA respectively. Plumrose offers an array of branded, prepared foods including bacon, hams, sliced deli meats and cooked ribs. Plumrose annual net revenues are estimated at US$500 million.
“The focus of Danish Crown’s 4WD strategy is to lead our home markets in Northern Europe, further grow our position in Asia and to expand our leading position in casings globally,” said Jais Valeur, group CEO of Danish Crown, in a press release. “We have therefore decided to sell Plumrose USA.”
JBS acquisitions strategy
The announced transaction is a continuation of the JBS global strategy to increase its presence in the prepared foods and branded product categories. Since 2013, JBS has expanded its consumer-facing product portfolio through the acquisitions of Seara, a pork and poultry prepared foods business in Brazil; Andrews Meat Industries, a red meat solution provider in Australia; Primo Smallgoods, a leader in branded, prepared foods including ham, sausage and bacon products in Australia and New Zealand; Moy Park, a leader in innovative convenience products and prepared foods in the United Kingdom; Cargill Pork, which includes significant bacon production capabilities; and GNP Company, a leading provider of premium branded chicken products in the U.S.
Barclays acted as financial advisor to JBS in this transaction. Squire Patton Boggs acted as legal advisor to JBS.