JBS found buyer for Five Rivers Cattle Feeding

JBS found buyer for Five Rivers Cattle Feeding

Affiliates of Pinnacle Asset Management, a leading commodities and natural resources investment firm, announced they have entered into an agreement to acquire the U.S.-based cattle feeding assets and farms, collectively known as Five Rivers Cattle Feeding, from JBS USA, for approximately 200 million USD.

Five Rivers Cattle Feeding is the largest cattle feeding operation in the world, with roots in the U.S. dating back to the 1920s. The transaction includes 11 feed yards across Arizona, Colorado, Idaho, Kansas, Oklahoma and Texas, with feeding capacity of more than 900,000 head of cattle, and a long-term agreement to supply cattle to JBS USA beef processing plants. The current Five Rivers management team will remain in place, led by president and CEO Mike Thoren, to ensure business continuity and build upon Five Rivers’ strong track record of innovation and stewardship. Pinnacle, which focuses on commodities-based investments, plans to run the Five Rivers business in an operating partnership with Oklahoma City-based cattle feeding firm Arcadia Asset Management, founded by Fed Cattle Exchange co-founder Jordan Levi. 

The deal, JBS said, still requires the “usual regulatory approvals and adjustments” and Pinnacle securing the required funding. JBS said it plans to use part of the proceeds to continue to pay down debt in Brazil.  JBS’s divestment plan began last June after it became tangled in a corruption scandal which raised concerns about the Brazilian meat packing giant’s financing costs.

JBS had owned Five Rivers since 2008, buying what was then a joint venture between Smithfield Foods and Continental Grain Co. Five Rivers’ businesses date back to the late 1920s, when cattle feeding pioneer Warren Monfort began operating at Greeley, Colorado. JBS said its partnership with Pinnacle will ensure its “continued ability to produce high-quality beef products, including natural, certified humane, raised without antibiotics, source-verified and traditional products, enjoyed by customers and consumers around the world.”

Source: Global Newswire