The two companies had previously announced the proposed acquisition in July, and JBS has now gained the needed regulatory approvals to complete the transaction without restrictions.
Through its U.S. subsidiary, JBS USA, the company paid about $1.45 billion on a debt-free, cash free basis, adjusted at closing by the net working capital variation and long-term liabilities of Cargill Pork.
Included in the acquisition are:
- Pork processing facilities in Ottumwa, Iowa, and Beardstown, Illinois
- Feed mills in London, Arkansas; Hedrick, Iowa; Centralia, Missouri; Smithton, Missouri; and Dalhart, Texas
- Hog farms in Morrilton, Arkansas; Umpire, Arkansas; Cameron, Oklahoma; and Dalhart, Texas
“Today’s announcement signifies a strengthening of our pork business through the combination of our established track record of adding value for our customer bases and Cargill’s complementary specialty-product offerings, including bacon, antibiotic-free and sow housing production system options, stated Marty Dooley, president and chief operating officer, JBS USA Pork.
The Cargill Pork acquisition, combined with the existing JBS Pork business in the U.S., has pro forma net revenue of about $6.3 billion and a processing capacity of about 90,000 hogs per day and two million pounds of bacon per week.
“This acquisition is fully aligned with JBS’ strategy to grow our portfolio of prepared and value-added products, further expanding our company’s customer base and enhancing our premium pork product mix,” said Wesley Batista, Global CEO of JBS.