JBS finalizes acquisition of Cargill Pork

Meat and poultry processor JBS has concluded the purchase of Cargill Pork, effective October 30.
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.

JBS completes Moy Park purchase

Brazil-based meat and poultry company JBS has finalized the purchase of European poultry company Moy Park for a price of US$1.5 million.
JBS announced the completion of the purchase on September 29, stating that the transaction has received clearance from the European Commission and all other necessary regulatory approvals. Moy Park was previously owned by Marfrig, also a Brazil-based meat and poultry company.
With the purchase, JBS is gaining a company that has been in a state of expansion. Moy Park had earlier announced plans to complete at least 250 new poultry houses in Northern Ireland.
According to reports, JBS will pay Marfrig US$1.2 billion for Moy Park, but it will also assume Moy Park’s debt, which amounts to about $293 million.
JBS announced its intent to acquire Moy Park in June, departing from earlier statements that JBS would not seek acquisitions in 2015 and would instead focus on organic growth. However, JBS CEO Wesley Batista later changed his stance and said the company would “for sure” be seeking new acquisitions during the year.

JBS in July also revealed its intent to acquire Cargill’s U.S. pork operations for US$1.45 billion. That proposed acquisition remains subject to regulatory review and approval.

JBS fined $19 million for treatment of Big Frango workers

Big Frango, a division of JBS, has been hit by fines for failing to ensure working safety, operating excessively long shifts, and allowing employees to work for weeks at a time without a break.
Brazil’s Ministry of Work (MPT), following investigations at JBS’ Big Frango Rolandia processing facility in the southern Brazilian state of Parana, has imposed fines of BRL73 million (US$19 million) on the company. Big Frango must now rectify the failings identified or face further fines.
Big Frango slaughters around 350,000 chickens daily, and employs approximately 4,500 workers.
Among those areas highlighted by the MPT are that Big Frango operated shifts of up to 18 hours a day. The working pattern at the site was classified as “harmful to health,” and one employee was identified who had worked for 39 consecutive days.
MPT also said that the company failed to make payments into the state pension fund between August 2013 and December 2014, prejudicing 7,000 workers, and depriving the fund of BRL5.8 million in payments. 4,500 workers. Last year, parent company JBS has sales of BRL120 billion
The MPT has ordered Big Frango to immediately rectify the problems identified, including giving breaks on a daily and weekly basis, general improvements to the working environment, installing proper guards on machines, the reduction of noise levels, and supplying staff with individual protection equipment necessary to do their jobs.
The company has also been required to improve its accidents at work procedures, improve its refrigeration systems and make payments into the pension fund and give paid holidays.
The changes must be made over the next 12 months or JBS will face additional fines.
“JBS subjected its employees, with the aim of making a profit at any cost, to working days of up to 18 hours, and to working for weeks on end without proper rest,“ said MPT attorney, Heiler Natali.
Inadequate ammonia controls were also identified at the poultry processing facility, putting the lives of employees at risk and contaminating water. The ergonomics of the work area were found to be so poor that 53 percent of staff were found to be relying on some sort of medicine to be able to work, according to Natali.

JBS USA joins Field to Market sustainability alliance

Meat and poultry processor JBS USA has joined Field to Market: The Alliance for Sustainable Agriculture, a multi-stakeholder initiative working to unite the agricultural supply chain in defining, measuring and advancing the sustainability of food, fiber and fuel production.
“JBS believes that sustainability simply means responsibly meeting the needs of the present while improving the ability of future generations to responsibly meet their own needs,” said Cameron Bruett, chief sustainability officer and head of corporate affairs for JBS USA. “Field to Market has demonstrated that through collaboration and multi-stakeholder engagement, a more sustainable and efficient future for everyone is not only possible, but within our collective grasp. We are honored to join the effort to boldly address the issues associated with an essential component of the livestock and poultry industry’s sustainability footprint – crops used for animal feed.”
As a member in Field to Market, JBS will work with grower organizations, academia, conservation groups, public sector partners and leading companies to identify opportunities to catalyze continuous improvement in the sustainability of grain used for livestock and poultry feed.
“The consumer as well as the entire agricultural supply chain benefits from a coordinated and comprehensive approach to measuring the sustainability of commodity crops,” said Rod Snyder, president of Field to Market. ”We are pleased to welcome JBS USA as the first livestock and poultry processor in Field to Market and look forward to working with them toward advancing positive environmental outcomes and continuous improvement in feed production.”

Senator pushes for scrutiny of proposed JBS-Cargill deal

Sen. Chuck Grassley, R- Iowa, has sent a letter to theU.S. Department of Justice pressing the Antitrust Division to review JBS USA’s proposed acquisition of Cargill’s pork unit.
The two companies announced the proposed transaction, valued at $1.45 billion, on July 1.
Grassley expressed concern that the merger will increase concentration and decrease competition in the U.S. pork industry. 
“If theJBS-Cargill deal is finalized, the four largest pork processors will control roughly 71 percent of the processing capacity in the country. Continued mergers and acquisitions in an already consolidated pork industry could reduce competition. And, reduced marketing opportunities for farmers and independent producers, and the subsequent impact it could have on pork prices for consumers is of great concern,” said Grassley. 
JBS USA and Cargill Inc. are currently the third and fourth largest U.S. pork processors respectively.  If the transaction is finalized, JBS USA will become the second largest pork processor with a daily slaughter capacity of around 83,000 head. This equates to nearly 20 percent of U.S. daily pork processing capacity, Grassley said.
Both companies have plants in the state Grassley represents. JBS USA has a plant located in Marshalltown, Iowa, and Cargill has a plant located in Ottumwa, Iowa. 

JBS agrees to acquire Cargill US pork business

Andrea Gantz
JBS USA Pork plans to acquire Cargill's U.S. pork business for a price of $1.45 billion. 
JBS USA Pork on July 1 agreed to acquire Cargill’s U.S.-based pork business for $1.45 billion. Completion of the acquisition is subject to regulatory review and approval.
“Today’s announcement of our agreement to purchase the Cargill pork operations is a strategic investment in the long-term growth of our domestic and global pork business and demonstrates our continued commitment to the U.S. livestock sector,” said Martin Dooley, president and chief operating officer of JBS USA Pork. “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. 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.”
Included in JBS’ acquisition of Cargill’s pork business are two Midwest meat processing plants, one in Ottumwa, Iowa, and the other at Beardstown, Illinois. 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).
“The strengths of the JBS and Cargill pork businesses are complementary. Together, they promise to offer enhanced service to customers and more opportunities for employees and hog producers while providing an important source of protein to consumers around the world,” said Todd Hall, Cargill senior vice president. “The professional and focused manner in which JBS approached Cargill demonstrated to us that they place a great deal of value on growing this part of their company to better compete in the marketplace and are willing to invest in its future. JBS is acquiring a business with excellent people and fixed assets, and an established track record of success.”


The history of JBS USA Pork
JBS first entered the U.S. pork market with the acquisition of Swift & Company in 2007 and has steadily improved performance ever since. The company has more than 6,000 team members and the total daily capacity to process more than 50,000 hogs at processing facilities in Marshalltown, Iowa; Worthington, Minnesota; and Louisville, Kentucky. JBS USA Pork offers a wide selection of well-known brands including Swift and Swift Premium. The proposed transaction will enhance JBS USA Pork’s ability to meet increasing global demand for high-quality, innovative fresh and frozen pork products.


Another pending JBS acquisition
JBS’ pending purchase of the Cargill pork unit is the second proposed acquisition the company has announced in June. Less than two weeks ago, JBS agreed to buy European poultry company Moy Park from Brazilian competitor Marfrig, for a price of about $1.5 billion.
JBS CEO Wesley Batista in May remarked that the company would be pursuing acquisitions in 2015, departing from comments that he made during a March conference call with shareholders, when he stated that the company planned to focus on organic growth, rather than pursuing more acquisitions.

JBS offers to buy Moy Park for $1.5 billion

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  Bigstock

  JBS has offered to purchase poultry company Moy Park from Marfrig for a price of $1.5 billion.

  From WATTAgNet:
  Brazil-based meat and poultry company JBS has agreed to buy European poultry company Moy Park from Brazilian competitor Marfrig for a price of about $1.5 billion.
  The proposed transaction will involve a $1.19 billion investment from JBS for the acquisition, with another $318 million being invested to take on Moy Park’s current debt. The deal is subject to regulatory approval.
  The news of the proposed acquisition comes one month after JBS CEO Wesley Batista said the company will “for sure” be looking at potential acquisitions in the chicken and pork sectors, as well as the packaged food sectors. That statement was a direct departure from comments Batista made during the JBS quarterly earnings call on March 11, when he said the company would not pursue acquisitions in 2015, but would instead seek organic growth.
  Moy Park, whose key product categories include chicken, turkey, broiler hatching eggs, feed sales and beef, processes 234 million birds annually, according to the WATTAgNet Top Poultry Companies Database. It has 4 processing plants and 6 further processing plants.
  Moy Park has been in a state of expansion in recent months, as it announced plans to complete at least 250 new poultry houses in Northern Ireland. In addition to Northern Ireland, Moy Park also produces and processes poultry in Ireland, England, the Netherlands and France.

JBS changes mind, will seek acquisitions in 2015

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  Australian Chicken Meat Federation

  JBS CEO Wesley Batista said the company will pursue the acquisition of more poultry or pork companies in 2015.

  From WATTAgNet:
  JBS SA, a Brazil-based meat and poultry company, has changed its mind about not pursuing acquisitions in 2015, with the company’s CEO stating that JBS is in fact looking for acquisition opportunities in North America, South America and Australia.
  JBS CEO Wesley Batista on May 20 stated the company will “for sure” be looking at potential acquisitions in the chicken and pork sectors, as well as the packaged food sectors, according to a Reuters report.
  Batista’s comments are a direct departure from what he said during the JBS quarterly earnings call on March 11, when he said the company would not pursue acquisitions in 2015, and instead focus on organic growth, with a particular emphasis on finalizing its acquisition of Australian processed foods maker Primo Group, growing its U.S. pork operations and processed foods division. JBS announced its pending purchase of Primo Group in November 2014.
  At the same time JBS announced its intent to purchase Primo Group, the Brazilian-based meat and poultry company also revealed its plans to acquire Big Frango for an estimated BRL430 million (US$165.8 million).
  JBS recently revealed its financial results for the first quarter of fiscal year 2015, with a net income of BRL1.394 billion (US$461.6 million), up dramatically from the BRL70 million (US23.2 million) the company achieved in the first quarter of fiscal year 2014.

8 reasons JBS is happy with first quarter of FY 2015

JBS SA, a Brazil-based meat and poultry company, reported positive financial results for the first quarter of fiscal year 2015. With net revenues up in four of the company’s five units, the company is hailing its diverse product base.
Highlights for the quarter include:
1. Net income up dramatically – After recording a net income of BRL70 million (US23.2 million) during the first quarter of fiscal year 2014, one year later JBS SA reported a net income of BRL1.394 billion (US$461.6 million).
2. JBS SA net revenues up – Companywide, JBS SA reported a net revenue of BRL33.8 billion for the first quarter, an increase of 28 percent when compared to the first quarter of 2014.
3. Increase in gross profit – Gross profit for the company during the first quarter of FY 2015 was BRL4.8 billion, a 39.6 percent year-over-year increase.
4. EBITDA more than doubles – Earnings before interest, taxes, depreciation and amortization (EBITDA) was reported at BRL 2.8 billion, an increase of 57.6 over the EBITDA figures from the same period during fiscal year 2014. The company’s EBITDA margin was 8.2 percent.
5. JBS Foods net revenue jumps –JBS Foods, the company’s newest subsidiary that includes poultry, pork and prepared foods in Brazil, reported a net revenue of BRL3.9 billion during the first quarter of FY 2015, a 39.4 percent increase when compared to the first quarter of FY 2014.
6. Pilgrim’s Pride revenue edges up – JBS USA Chicken, also known as Pilgrim’s Pride, recorded a 1.7 percent year-over-year increase in net revenue, with the figure reaching US$2.1 billion.
7. JBS Mercosul net revenue up – JBS Mercosul’s net revenue for the first quarter of 2015 was BRL 6.8 million, a year-over-year increase of 18.5 percent. The JBS Mercosul business unit includes beef, hides, leather and related businesses in Brazil.
8. Increase for JBS USA beef net revenue – JBS USA Beef achieved a 14.8 percent increase in net revenue for the first quarter of FY 2015, with a net revenue of US$5.2 billion.
“Our strategy over the last years allowed us to create a global production platform. Today we operate a diversified portfolio, with value-added products and strong brands worldwide. This strategy allows us to generate more solid and consistent results ongoing," said Wesley Batista, Global CEO of JBS.
The company’s USA Pork unit was the exception during the first quarter of FY 2015, recording a net revenue of US$762.3 million, a year-over year decrease of 15 percent.

JBS: Chicken the best way to serve emerging markets

The CEO of Brazil-based multi-protein company JBS says it sees chicken as the company’s best option to tap into emerging markets and their growing demand for animal protein.
Wesley Batista, the company’s CEO, told Bloomberg that there are fewer religious and cultural barriers that keep consumers from eating poultry than other proteins produced by the company like beef and pork. It is also easier for a company to meet the demand because of a shorter growth cycle and the amount of land it requires to produce chicken.
“Beef production has a very small elasticity,” Batista said. “Because of the costs and the amount of land it requires, I don’t see a huge increase in supply, and consequently, in production.”
Recent business moves from JBS have reflected the company’s confidence in poultry. Within the last two years, the company has purchased Seara, an acquisition that made JBS the second-largest poultry producer in Brazil, according to the WATT Global Media Top Companies Database. JBS is also the parent company of Pilgrim’s, the second largest broiler company in the United States, which also has operations in Mexico.
JBS also has agreed to purchase Tyson Foods’ Brazilian and Mexican operations and Brazilian chicken company Big Frango.

JBS leader: Create dialogue between ag, consumers

People involved in agriculture need to create a dialogue and put a face to the industry, attendees of the 2015 Animal Agriculture Alliance Stakeholders Summit were told on May 6.
“It’s about having a dialogue, not just telling a story,” Cameron Bruett, chief sustainability officer and head of corporate affairs for JBS USA, said at the summit, held in Kansas City, Missouri. “We have this huge modern disconnect with agriculture; most of the consumers’ interaction with agriculture is the grocery store.”
A disconnect with consumers was a common talking point for all of the first-day summit speakers noting that the agriculture industry has a great story to tell, but there is a lack of engagement with the consumers who couldn’t survive without the farmers and producers. When there is no dialogue and engagement, consumers’ perceptions about our food supply will hinder the move towards a more sustainable and efficient future for everyone.



Defining sustainability
Another overarching topic was defining what sustainability actually means. “Sustainability means something different for whoever is talking about it,” Bruett said.
“Simply defined, sustainability is responsibility meeting the needs of the present while improving the ability of future generations to responsibly meet their own needs,” Bruett said. He added that it’s more about finding a balance between three things: social responsibility, economically viable and environmentally sound.


Merck Animal Health official: Put a face on agriculture 

John Graettinger, director of food chain affairs at Merck Animal Health discussed the topic of consumer trust on a panel alongside Mandy Hagan, vice president of state of affairs at Grocery Manufacturers Association.
“We need to show our face because people like people,” Graettinger said. “If you put that face on our production facilities, we are going to go far.”


Show how agriculture benefits consumers

Hagan followed by introducing the notion that the agricultural industry needs to make the conversation about the consumers and show how agriculture benefits them, not just the companies, especially when talking about technology in agriculture. Hagan gave the example of genetically modified crops and how adding vitamin A to a developing world’s staple food could save lives.
“Our side of the story is much more complicated,” Hagan said. “If it’s a benefit for the consumer then the dialogue will change. I don’t think it’s too late.”


Agriculture bloggers can have positive impact

To close out the first day, two bloggers from the alliance’s blogger tour took the stage and shared their personal experiences as well as how their new role in the industry can have a positive impact for farmers and consumers.
Ilina Ewen, writer for the blog "Dirt & Noise," said that the experience for her was very “eye-opening” and said the agriculture is really about family, people and culture. “Food in this country is something we take for granted and [the tour] made me value our food system,” Ewen said. “The passion that is demonstrated in ag is unparalleled to any other industry.”
Lisa Frame, writer for the blog "A Daily Pinch," shared that she came from a farming family and that agriculture is really about “becoming part of a family” and that her experience made her and Ewen a part of the family. “We are vested in your fishbowl now,” Frame said.

Judge rules against foes of JBS pork plant expansion

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  Andrea Gantz

  A judge has denied an appeal from a group opposing an expansion at a JBS Swift pork plant in Kentucky.

  From WATTAgNet:
  An appeal filed by opponents of an expansion at a JBS Swift pork processing plant in Louisville, Kentucky, has been denied by a Kentucky judge.
  An organization known as the Butchertown Neighborhood Association (BNA) fought the Metro Board of Zoning Adjustment’s decision to allow JBS to expand the facility. BNA, which has a history of complaining about odors from the plant, claimed that the zoning board did not follow state law and local development rules. But the judge ruled in favor of JBS and the zoning board, concluding that the zoning board properly granted the permit sought by JBS.
  Glenn Price, an attorney representing JBS, said he and his client were pleased with the ruling. "Our goal remains the same, to continuously improve the performance of our operation and our standing with our partners in the community," he said.
  The Swift plant improvements include a 4,008-square-foot enclosed hog unloading chute, which would allow the animals to move from trucks to slaughter with “less shock to their systems, thereby reducing injuries to both the hogs and JBS employees.” The plant improvements were also designed to limit noise and odors. Other new features at the Swift plant include a covered break area for workers, a decorative fence, and a 162-square-foot addition to an existing building where the animals are stunned, rendered unconscious and bled. The changes have already been implemented, the plant manager said.

JBS ratings upgraded by Moody’s Investors Service

Brazil-based meat and poultry processorJBS SA has had its ratings upgraded byMoody’s Investors Service, JBS officials announced on April 13.
Moody's upgraded JBS S.A.'s corporate family ratings from a Ba3 rating to Ba2. Moody's also upgraded the company subsidiary JBS USA’s senior unsecured ratings to Ba2 and senior secured ratings to Ba1. The outlook for the ratings is stable.
According to Moody's: "The upgrade reflects primarily the improvement observed in JBS' credit metrics resulted from the strong performance of key business segments and the rapid, profitable expansion into the processed food business in Brazil, which has already contributed higher margins and will allow for a more stable cash generation going forward."
Moody's also highlighted the global strength of JBS' operations as one of the world's largest protein producers and its diversification in terms of protein products.
This upgrade reflects the company's strong financial position and its commitment to operational excellence, focus on free cash flow generation and continuous deleveraging, according to a press release from JBS.
JBS in recent months has been actively growing through acquisitions. It’s most recent acquisition involved the purchase ofPrimo Group, a a leading producer of ham, bacon, pork, and continental smallgoods in Australia. That transaction was valued at US$1.125 billion. However, the company earlier stated it did not intend to pursue any further acquisitions in 2015.

JBS finalizes purchase of Australia’s Primo Group

Brazilian meat and poultry company JBS has finalized its purchase of Australia’s Primo Group, the company said in a March 30 filing.
The transaction had earlier in March been approved by Australia's Foreign Investment Review Board (FIRB). With the acquisition finalized, Primo Group, a leading producer of ham, bacon, pork, and continental smallgoods in Australia, will become a part of the JBS Australian subsidiary JBS Smallgoods HoldCo Australia Pty. Ltd. The transaction was valued at US$1.125 billion, according to a Reuters report.
Established in 1985, Primo Group has a portfolio of well recognized and highly regarded brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. The business currently employs in excess of 4,000 employees and operates from five manufacturing plants, seven distribution centers and 30 retail shops.
JBS announced its intent to purchase Primo Group in November 2014. At the same time the Brazilian-based meat and poultry company also revealed its plans to acquire Big Frango for an estimated BRL430 million (US$165.8 million).
The Big Frango Group is one of the largest groups in the poultry sector in the Southern region of Brazil, with more than 49 years of experience and a processing capacity of 460 thousand birds per day in two processing facilities.

JBS CEO: No new acquisitions planned for 2015

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  Freeimages.com/morderska

  Brazilian meat and poultry company JBS SA will not seek any new acquisitions in 2015, its CEO said.

  From WATTAgNet:
  Brazilian meat and poultry company JBS SA has decided to not pursue any new acquisitions in 2015 and instead focus on plans to finalize the acquisition of an Australian company, as well as concentrate on its U.S. pork operations and processed foods division, CEO Wesley Batista said.
  Between BRL2.5 billion and 3 billion (US$806 million and $967 million) in capital investment will be needed in 2015 to support the strategy, Batista said.
  "We have many fruits to harvest," Batista said as the company released its fourth quarter earnings on March 11.
  JBS plans to finalize its $1.25 billion purchase of Australian processed foods maker Primo Group. The deal, announced in November and recently given clearance by the Australian Foreign Investment Review Board, is an opportunity to increase sales in Asian markets.
  The company also has more synergies to reap from the 2013 purchase of Brazilian poultry producer Seara, Batista said.
  JBS net income up in FY 2014, Q4
  During a JBS earnings conference call, Batista reported a strong performance for the company for fiscal year 2014 and the fourth quarter of the year. For the quarter, JBS posted a net income of BRL618.8 million (US$197.6 million), a year-over-year improvement of 340 percent. It’s net income for all of 2014 was BRL2 billion (US$638.7 million), up 120 percent from fiscal year 2013.
  Net revenues for Pilgrim’s, the North American poultry unit of JBS, were reported at US$2.1 billion for the fourth quarter, a three percent improvement when compared to the same period of the previous year. Net revenues for all of fiscal year 2014 were up 2 percent at US$8.6 billion.

Australia regulators OK JBS purchase of Primo Group

Australian regulators have approved a bid from JBS to acquire Australia’s Primo Group. The approval by Australia's Foreign Investment Review Board (FIRB), subject to conditions at Primo's abattoir, allows the purchase by JBS USA Holdings Inc., through its wholly owned unit JBS Smallgoods HoldCo Australia Pty. Ltd., to move ahead.
"The government welcomes foreign investment in Australia and continues to ensure that investments are consistent with Australia's national interest," Australian Treasurer Joe Hockey said in a statement issued to Reuters.
JBS in November 2014 announced its intent to purchase Primo Group for an amount of AU$1,450 million (US$1,250 million).
Established in 1985, Primo Group has a portfolio of well recognized and highly regarded brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats. The business currently employs in excess of 4,000 employees and operates from five manufacturing plants, seven distribution centers and 30 retail shops.
At the same JBS announced its intent to purchase Primo Group, the Brazilian-based meat and poultry company also revealed its plans to acquire Big Frango for an estimated BRL430 million (US$165.8 million).
The Big Frango Group is one of the largest groups in the poultry sector in the Southern region of Brazil, with more than 49 years of experience and a processing capacity of 460 thousand birds per day in two processing facilities.

IPO for JBS Foods withdrawn again

Brazilian meat and poultry company JBS SA has again withdrawn its initial public offering (IPO) for JBS Foods. JBS Foods is the company’s newest subsidiary, producing value-added poultry and pork products.
The company opted to withdraw the IPO, which would have spun off its Brazilian pork, poultry and food operations into a separate company, because of unfavorable market conditions, the New York Times reported.
The IPO was expected to raise as much as BRL3.5 million (US$1.22 million), and the company had earlier revealed that it hoped to use the money raised through the IPO to help pay down debt and make investments.
This is not the first time JBS has withdrawn the IPO. The company had previously announced an IPO in May 2014, but withdrew it in October because of poor market conditions. It would later refile an IPO, hoping that market conditions would improve. However, recent forecasts indicate the financial situation may not improve any time soon.
Brazil’s central bank’s most recent survey of local financial institutions gives a consensus forecast that the economy will contract 0.5 percent in 2015 and that inflation will top 7 percent. Brazil’s currency, the real, has fallen nearly 30 percent against the U.S. dollar since the JBS Foods IPO was first announced in 2014.

JBS agrees to acquire Big Frango, Primo Group

JBS  has entered agreements to acquire the assets of Brazilian poultry company Big Frango and Primo Group, a leading producer of ham, bacon and small goods in Australia and New Zealand. JBS will collectively pay about US$1.4 billion for the two companies.


JBS plans to purchase Big Frango
JBS, through its subsidiary JBS Aves Ltda., announced November 20 that it intends to purchase the Big Frango Group for an estimated BRL430 million (US$165.8 million).
The Big Frango Group is one of the largest groups in the poultry sector in the Southern region of Brazil, with more than 49 years of experience and a processing capacity of 460 thousand birds per day in two processing facilities with license to export to the major global markets, and with annual sales of more than BRL1billion (US$385 million). In this context, this acquisition represents an important step to strengthen JBS Foods position in the Brazilian and international consumer market of poultry and poultry products.
Big Frango is presently owned by AMSE02, which acquired the poultry processor as a result of a debt restructuring process and corporate reorganization promoted between the former owners and shareholders of Big Frango Group.
The proposed acquisition is pending regulatory approval.


JBS offers to buy Primo Group
JBS, through its subsidiary JBS Australia, has announced its intent to purchase Primo Group for an amount of AU$1,450 million (US$1,250 million). The transaction will be paid for in cash and is subject to approval of the Australian regulatory authorities.
Established in 1985, Primo Group has a portfolio of well recognized and highly regarded brands including Primo Smallgoods, Hans, Beehive, Hunter Valley Quality Meats and Primo Quality Meats.  The business currently employs in excess of 4,000 employees and operates from five manufacturing plants, seven distribution centers and 30 retail shops. Recognized by its high quality standards, Primo Group operates
"This acquisition is strongly aligned with our global strategy to expand our presence in the value-added product category and well-known brands. Primo Group is the leading company in this segment with strong brands and represents an outstanding opportunity to expand our business in Australia, considering the annual growth in consumption of prepared products and the prospects to increase exports of convenient products from Primo Group portfolio," commented Wesley Batista, Global CEO of JBS.

JBS net profit, net revenues up in 3Q 2014

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  Anna Moderska

  
  

  From WATTAgNet:
  Brazilian meat and poultry processor JBS SA reported a net profit of BRL 1.1 billion (US$428 million) in the third quarter of fiscal year 2014. The company also saw its net revenues reach BRL 30.8 billion (US$12.05 billion), a 27.1 percent improvement when compared to the same quarter of fiscal year 2014.
  The company saw net revenues increase in all of its business segments: JBS Foods, JBS Mercosul, JBS USA Beef, JBS USA Pork and JBS USA Chicken (Pilgrim’s Pride Corporation).
  Net revenues for JBS USA Beef and JBS Merocosul, which includes Brazilian beef operations, both saw significant gains from a strong demand for beef products. JBS USA Beef saw the strongest gains, with net revenues up 24.7 percent, while JBS Mercosul net revenues improved 14.8 percent when compared to the third quarter of fiscal year 2013.
  JBS Foods, the Brazilian subsidiary which includes pork, poultry and processed products, saw net revenues jump 17.2 percent when compared to the second quarter of 2014, reflecting an increase in sales volumes in all product lines, with the biggest gains being made in fresh pork.
  Making smaller improvements in net revenues were JBS USA Chicken, which saw its net revenues jump 5.8 percent on a year-over year basis, and JBS USA Pork, which had net revenues improve 3.8 percent from the third quarter of fiscal year 2013.

JBS becomes associate member of International Poultry Council

Meat and poultry processor JBS SA has become an associate member of the International Poultry Council (IPC).
Established in 1953 as a slaughtering business by cattle rancher José Batista Sobrinho in Anapolis, in the central Brazil state of Goiás, JBS currently has more than 300 production facilities and 185,000 employees worldwide. The company processes beef, pork, poultry, and lamb and produces other products.
Headquartered in São Paulo, JBS became the world’s largest company in the beef sector in 2007 with the purchase of Swift & Company in the United States and Australia. The company entered the chicken business with the purchase of Pilgrim’s Pride in 2009, and in 2013 grew further with the acquisition of Seara.
The company’s IPC representative is Wilson Mello Neto, director of government relations and communications.
“With the addition of JBS, the IPC now has a total of 33 associate members that include processors, animal health suppliers, primary breeders, equipment manufacturers, packaging companies, and others allied with the international poultry industry,” said IPC President Jim Sumner. “We welcome JBS into the IPC’s growing global base of associate members.”
Poultry industry representatives in 24 countries are members of the IPC, which was formed in 2005 as a forum for the world’s poultry-producing countries. The organization represents about 85 percent of the world’s poultry production and nearly 96 percent of global trade in poultry meat.