• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

National Beef Buyout!

G

GLA

Well-known member
Joined
Feb 14, 2005
Messages
99
Location
Stratford, Texas
JBS Buys Out National Beef Partners for $560 Million
2008-03-04 18:24 (New York)

By Choy Leng Yeong
March 4 (Bloomberg) -- JBS SA, the world's biggest beef
producer, agreed to buy out its partners in the National Beef
Packing Co. LLC venture for $560 million in cash and stock.
JBS agreed on Feb. 29 to pay about $465 million cash and $95
million in JBS stock, Kansas City, Missouri-based U.S. Premium
Beef LLC, a partner in the National Beef venture, said today in a
filing with the U.S. Securities and Exchange Commission.
JBS bought closely held Swift & Co. in July for $1.4 billion
to gain access to the U.S., the world's top consumer of beef.
National Beef President Timothy M. Klein will become the
president and chief operating officer of National Beef and some
Swift beef operations, U.S. Premium Beef said.
``National Beef is an industry leader in value added fresh
beef in the United States and is also a leading U.S. exporter of
fresh chilled and frozen beef to Japan -- both of which are
strengths that will complement our business plan for growth in
beef processing in the United States and especially the Pacific
Rim,'' JBS USA Inc. Chief Executive Officer Wesley Batista said
in a statement.
National Beef, based in Kansas City, has operations in
California, Pennsylvania and Georgia. It had sales of
$5.6 billion and processed 3.9 million head of cattle in fiscal
year 2007, according to the statement.

--Editors: Steven Frank, Kevin Orland.
 
This is not quite a done deal.

Government regulators have to approve first.

If approved, JBS will have about 28% of the domestic processing market, and Tyson will be bit ahead with 30%.

mrj
 
MRJ, JBS would have 42,500 head per day kill, with Cargill at 29,000 and Tyson at 28,500. That may not be the same as your processing percentage, but still scary!

With a competiton number of 1000 for comparison purposes, a listing of 100 causes strict scrunity on the purchase.....this trade's number is 900!!

I can't see how the Justice Department or the Securities and Exchanges Commission will let this thing go thru without some spin off of some of the assets....feedyards or packing plants. This thing could cause a big part of several feeding areas to have just one buyer.....that just ain't right!!!

GLA
 
:o :shock: :o :shock: Who coulda seen this coming?!?!?!?(<sarcasm)

I just have to wonder what it will take to wake up some cattlemen and a cattleman organization!!!!!!!!! PACKERS DON'T NEED TO OWN YOUR CATTLE...ALL THEY NEED TO OWN IS ACCESS TO THE CONSUMER!!!!

Now we can be just like Canada...the majority of our processing industry being owned by a foreign country! :mad:
 
Here are some other holdings of the group that owns a huge share of JBS S.A.


http://www.hmcapital.com/realized_investments.html
*************************************************

5/29/2007 5:55:00 AM


Swift & J&F To Create the World's Number-One Beef Processor

DALLAS & SAO PAULO, Brazil & GREELEY, Colo.--(BUSINESS WIRE)--HM Capital Partners LLC, a leading, Dallas-based private equity firm, J&F Participações S.A. ("J&F"), which owns 77 percent of Brazil's JBS S.A. (Bovespa: JBSS3), Latin America's largest beef processor, and Swift & Company ("Swift"), the world's third-largest processor of fresh beef and pork products, today announced that HM Capital and J&F have signed a definitive agreement under which J&F will acquire Swift in an all-cash transaction representing an enterprise value of approximately $1.4 billion.
 
GLA said:
MRJ, JBS would have 42,500 head per day kill, with Cargill at 29,000 and Tyson at 28,500. That may not be the same as your processing percentage, but still scary!

With a competiton number of 1000 for comparison purposes, a listing of 100 causes strict scrunity on the purchase.....this trade's number is 900!!

I can't see how the Justice Department or the Securities and Exchanges Commission will let this thing go thru without some spin off of some of the assets....feedyards or packing plants. This thing could cause a big part of several feeding areas to have just one buyer.....that just ain't right!!!

GLA
Click to expand...

GLA......The story below says that they can slaughter 52,000 head per day in the worldwide facilities:

New Swift owner has expansion plans through 2008

Bill Jackson, (Bio) [email protected]
August 17, 2007

Comments Print Email

Joesley Mendonça Batista, CEO of JBS-S.A., the Brazilian company that now owns Greeley-based Swift & Co., said he is confident financial results from their U.S. acquisition will improve in the coming months and years.

Batista made the remarks Thursday in a conference call discussing second quarter results of JBS-S.A.

"I am proud of all of our team who did so an important acquisition that was so complex and was so successful," Batista said, apologizing that his Portuguese is much better than his English. He said there were no surprises in the $1.5 billion purchase and that the management team, led by his son, Wesley, is working on reducing costs where it can.

"We are confident about Swift results," he said. JBS-S.A. realized impressive numbers in its second quarter results, which do not reflect sales from Swift. Net income of $19.4 million for the quarter were up almost 21 percent the same quarter a year earlier and growth was noted in areas such as exports, the number of processed cattle and similar areas.

JBS-Swift is now the largest beef processor in terms of slaughter capacity and actual slaughter in the world.

Batista also covered a wide range of other aspects of the business, noting that while cattle prices have gone up in recent months that is not a major concern since that is part of the cyclical nature of the business. While Brazil operations have been centered on grass fed cattle for slaughter, Batista said JBS has purchased a feedlot that will have a 100,000 head capacity by 2008.

"We are not experts in feedlots," he said, but he said the feedlot business is expanding in Brazil and that he expects the company to make money in that area. "It will be 1, 2, maybe 3 years before we get the results from that business then we can decide our strategy, whether we will continue or not," Batista said.

He said feedlots in Brazil will use the by-products of soybean and sugar cane production as part of the feed ration in its feedlots, which is vastly different than that used in the U.S., where the main ingredient is corn.

The feedlot business will supply cattle where there is now a gap in getting grass-fed cattle to slaughter, he said, noting that feedlot cattle are now available about 10 months out of the year in Brazil where it used to be four to five months just 10 years ago.

Batista also talked briefly about new plants JBS has purchased in Brazil, including one that started in June making beef jerky intended for U.S. markets.

Steve Kay, publisher of Cattle Buyers Weekly, said JBS-Swift now has the capacity to slaughter 52,000 head of cattle per day throughout its worldwide operations.
 
GLA, is your number of 42,500 head per day kill within the USA, or what is projected for the worlwide capacity of JBS?

What I read said JBS, if it proceeds with acquisition, will have the percentages I quoted, 28%, while Tyson, will still be the largest in the USA at 30%.

So far as I'm concerned, I still fear big government with big regulations and big (and unjust) taxes far more than I fear big corporations, at least as long as we have excess kill capacity in the USA.

Next on the fear radar is extremist environmentalists who are determined to drive at least animal production, and proably even all productive agriculture out of this nation because it is "too messy" and sometimes "smells bad".

mrj
 
SAO PAULO, BRAZIL ― JBS SA, already the world's largest beef processor following the acquisition of Swift & Co., Greeley, Colo., in July, has acquired Smithfield Foods, Inc.'s beef business, including its cattle feeding operations, Five Rivers Ranch Cattle Feeding L.L.C., for $565 million. The news followed JBS's announcement it was acquiring National Beef Packing Company L.L.C., Kansas City, for $560 million in cash and stock, as well as Tasman Group in Australia for $148 million.

National Beef Packing, which is owned by U.S. Premium Beef L.L.C., is the nation's fourth-largest beef processor while Smithfield Foods is the fifth-largest. Combining Swift, Smithfield and National beef businesses will make JBS SA the largest beef processor in the United States.
 
mrj said:
GLA, is your number of 42,500 head per day kill within the USA, or what is projected for the worlwide capacity of JBS?

What I read said JBS, if it proceeds with acquisition, will have the percentages I quoted, 28%, while Tyson, will still be the largest in the USA at 30%.

So far as I'm concerned, I still fear big government with big regulations and big (and unjust) taxes far more than I fear big corporations, at least as long as we have excess kill capacity in the USA.

Next on the fear radar is extremist environmentalists who are determined to drive at least animal production, and proably even all productive agriculture out of this nation because it is "too messy" and sometimes "smells bad".

mrj
Click to expand...

The government takes it after you made it. Concentrated packers don't let you make it in the first place.
 
mrj said:
GLA, is your number of 42,500 head per day kill within the USA, or what is projected for the worlwide capacity of JBS?

What I read said JBS, if it proceeds with acquisition, will have the percentages I quoted, 28%, while Tyson, will still be the largest in the USA at 30%.

So far as I'm concerned, I still fear big government with big regulations and big (and unjust) taxes far more than I fear big corporations, at least as long as we have excess kill capacity in the USA.

Next on the fear radar is extremist environmentalists who are determined to drive at least animal production, and proably even all productive agriculture out of this nation because it is "too messy" and sometimes "smells bad".

mrj
Click to expand...

What you had better fear is when big government and big business work hand in hand!
 

Latest posts

Back
Top