JBS makes further acquisitions
06/03/2008
With the meat industry still digesting yesterday’s news that JBS had acquired Smithfield Beef, the Brazilian company—world’s largest beef producer and exporter—has announced that it has completed the acquisition of 50% of the capital of Inalca. This deal was originally announced in December.
Inalca is part of the Cremonini Group, of Italy, and one of Europe’s main beef producers.
JBS says the deal will give it access to new markets and customers, including large multinational fast-food companies, industrialised food producers, large food retailers and food distribution companies. Through the merger JBS will also have access to the latest state-of-the-art technology used by Inalca as well as its higher added-value products marketed under the Montana brand. To the Cremonini Group, it means privileged access to the world’s main sources of beef as well as a stronger control over the whole beef supply chain.
JBS has also purchased another two abattoirs and meat packing companies, the National Beef Packing Company of Delaware, US and the Australian Tasman Group.
JBS has stated that these acquisitions are part of a globalisation strategy and an important step towards the conclusion of a plan to build a platform for sustainable slaughter, production and commercialisation of beef and other meats in the US and Australia.
This plan started in July 2007 with the acquisition of Swift & Co. To help it pay for these more recent acquisitions, JBS is planning a private subscription of new shares for a total of $ 1.5 billion.
Share this story:
