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JBS selling Five Rivers Cattle Feeding after strategic review

Company announces additional asset sales as part of divestment program.

JBS S.A. announced June 20 that its board of directors has reviewed and approved a proposal to commence a divestment program that company executives estimate will raise approximately 6 billion reals ($1.8 billion). The company said the action is intended to further sharpen the focus of the business on key strategic areas, protect core assets and allow the company to reduce net debt as it works on plans for future growth.

The latest announcement adds to the 1 billion reals already announced with the sale of JBS operations in Argentina, Paraguay and Uruguay.

Following a careful assessment, the company said assets involved in the divestment program include: (1) the sale of its 19.2% shareholding interest in Vigor Alimentos S.A., (2) the sale of its shareholding interest at Moy Park and (3) the sale of the Five Rivers Cattle Feeding assets and farms.

“Selling these assets is central to a strategy designed to reinforce JBS’s competitive advantage in the global food industry,” the announcement said. “The sale of feedyard assets will more closely align the JBS business model with key U.S. competitors and allow the company to concentrate its efforts on its core food and value-added products businesses.”

JBS said an orderly sales process will be conducted to ensure business continuity.

“JBS Five Rivers will continue to operate as usual, including the purchasing of cattle and commodities in the ordinary course of business, until the closure of a transaction. In addition, JBS USA intends to continue agreements to purchase cattle from feedlots associated with Five Rivers Cattle Feeding operations," the company said.

TAGS: Business
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