Cargill plans to exit U.S. pork business, selling to JBS
by July 1, 2015 5:01 pm 175 views
Global meat giant JBS, the parent of Pilgrim’s Pride Chicken, announced plans to buy Cargill’s U.S. pork business for $1.45 billion, subject to regulatory review and approval.
The deal includes a processing plant in Ottumwa, Iowa, and one in Beardstown, Ill. Last year the two plants processed a combined 9.3 million hogs. If the deal is approved JBS will own five live feed mills, including one in Arkansas, and four hog farms, two of those in Arkansas.
“This operation is in line with JBS’ strategy to grow its portfolio of prepared and value-added products, expanding the company’s customer base both in the domestic market and internationally,” according to a press release issued by JBS.
Cargill management said JBS’ pork business is complimentary to its own which should make for a smooth transition when the deal is approved.
The combined JBS and Cargill pork production will likely give JBS a slight lead over Tyson Foods’ 17% marketshare but would remain second to Smithfield’s 26%, according to the U.S. Pork Board.