JBS to sell Five Rivers Cattle Feeding assets
Divestiture intendent to ‘further sharpen the focus of the business on key strategic areas’
According to its website, Five Rivers has a combined feeding capacity of more than 980,000 head of cattle with locations in Colorado, Kansas, Oklahoma, Texas, Arizona, and Idaho. In addition to these locations, Five Rivers (on behalf of JBS Food Canada) manages a 75,000 head capacity feedyard in Brooks, Alberta, Canada.
JBS is divesting of the subsidiary as it intends to further sharpen the focus of the business on key strategic areas, protect core assets and allow the company to reduce net debt as it works on plans for future growth.
Selling these assets is central to a strategy designed to reinforce JBS’ competitive advantage in the global food industry, the company stated in a press release. The sale of feed yard assets will more closely align the JBS business model with key U.S. competitors and allow the company to concentrate its efforts on its core food and value-added products businesses.
The decision to sell the cattle feeding operation comes several weeks after the company stated it did not intend to sell any U.S. assets. JBS had earlier announced that it would sell beef operations in Argentina, Paraguay and Uruguay to Minerva.
JBS will continue to purchase cattle from Five Rivers feedlots
According to the press release, an orderly sales process will be conducted to ensure business continuity. JBS Five Rivers will continue to operate as usual, including the purchasing of cattle and commodities in the ordinary course of business, until the closure of a transaction. In addition, JBS USA intends to continue agreements to purchase cattle from feedlots associated with Five Rivers Cattle Feeding operations.