Brazil’s JBS has agreed to buy US-based Plumrose USA from Danish Crown in a definitive share purchase agreement, valued at $230m.
The acquisition will see JBS take over five prepared food facilities and two logistics centres spanning four states across the eastern half of the US.
All 1,200 jobs at Plumrose USA are safe, according to JBS.
Plumrose USA is a bacon, ham and deli meat business that, last year, generated an estimated net revenue of around $500m.
Brazil-based JBS claims to be one of the world’s largest meat companies. Similarly, Danish Crown claims to be one of the world’s largest pork exporters, processing 22 million pigs per year and trading with 136 countries.
Subject to regulatory review and approval, the proposed transaction is expected to close during the second quarter of 2017.
“Today’s announcement is further demonstration of our commitment to disciplined growth through strategic acquisitions that further diversify our product portfolio, expand our branded offerings and strengthen our direct relationship with consumers,” said Andre Nogueira, CEO of JBS’ US operation.
He described Plumrose USA as a “well-respected business”, boasting a strong range of cooked and prepared meat products with “well-invested assets in strategic geographic locations”. Nogueira added JBS hopes to build on Danish Crown’s “legacy of high-quality products and outstanding service”.
Danish Crown lunched a new ‘four-wheel drive’ strategy – known as 4WD – in November as the company’s new CEO Jais Valeur moved to position Danish Crown as a leader in northern Europe, expand market share in Asia and grow its position in the global meat casings industry.
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Continuing to run the US business clearly did not fall in line with Valeur’s vision for Danish Crown.
‘Perfect match’ for Plumrose
The CEO said that JBS’ access to raw materials in North America made the firm a “perfect match for Plumrose USA and will help fortify its business”.
Dave Schanzer, CEO of Plumrose USA, described the US arm of JBS as “very complimentary” and said the planned acquisition was “exciting news”.
Since 2013, Brazilian meat giant JBS has moved forward with a large-scale global expansion strategy to increase its presence in the prepared and branded foods categories. In less than five years, the company has aggressively expanded with acquisitions of Brazil-based Seara; Andrews Meat Industries, Australia; Primo Smallgoods, Australia and New Zealand; UK poultry leader Moy Park ; Cargill Pork ; and GNP Company .
AUTOR: Oscar Rousseau
SOURCE: Global Meat News