- JBS USA Pork has announced that it would acquire Cargill, Inc.'s U.S.-based pork business for $1.45 billion.
- The acquisition reaffirms JBS USA Pork's commitment to the U.S. livestock sector and is "a strategic investment in the long-term growth of our domestic and global pork business," said Martin Dooley, president and COO of JBS USA Pork, in a statement.
- According to PR Newswire, "Included in JBS' acquisition of Cargill's pork business are two Midwest meat processing plants, one in Ottumwa, Iowa, and the other at Beardstown, Ill. Both plants were acquired by Cargill in 1987, and in 2014 they processed a total of 9.3 million hogs. The purchase by JBS also includes five feed mills (two in Missouri, and one each in Arkansas, Iowa and Texas), and four hog farms (two in Arkansas and one each in Oklahoma and Texas)."
With its acquisition of Swift & Company in 2007, JBS took its first step into the U.S. pork market, and since, the company has steadily improved its position and performance. Cargill, on the other hand, has been in the business since 1971 and was not even considering selling off the segment until JBS USA approached the company with an attractive offer, StarTribune reported. While Cargill maintains a strong presence in the U.S., Canadian, and Australian beef business and in chicken processing in Asia, Europe, and Latin America, global pork production was not its forte, so the sell-off enables Cargill to focus more on these stronger markets.
As global demand for high-quality, innovative fresh and frozen pork products continues to increase, this acquisition of Cargill's pork business will enable JBS USA Pork to keep up.
"This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers," Dooley said in a statement. "The strength and success of Cargill's pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base."
This acquisition comes not long after parent company JBS S.A. officially announced its interest in acquiring companies in the Americas and Australia, particularly in the chicken, pork, and branded, packaged food sectors.