JBS USA announced this week a definitive share purchase agreement with Danish Crown A/S ("Danish Crown") to acquire the company's U.S.-based bacon, ham and deli meat business, Plumrose USA. A news release from Danish Crown, sent via GlobeNewswire, said the purchase price was $230 million (USD). The companies anticipate the proposed transaction will close during the second quarter of 2017, subject to regulatory review and approval, and customary closing conditions.
"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, JBS USA Food Company in the release.
"Plumrose USA is a well-respected business with an outstanding professional team, a strong portfolio of branded, cooked and prepared foods, and first-class, well-invested assets in strategic geographic locations that complement our current business structure. We are excited to welcome the more than 1,200 dedicated team members of Plumrose USA to JBS and look forward to building on the legacy of high quality products and outstanding service established by Danish Crown."
The acquisition includes five prepared foods facilities, including one in Elkhart, Indiana, two in Council Bluffs, Iowa, one in Booneville, Mississippi, and one in Swanton, Vermont, and two distribution centers in South Bend, Indiana, and Tupelo, Mississippi, respectively, the release stated.
“Plumrose offers an array of branded, prepared foods including bacon, hams, sliced deli meats and cooked ribs. Plumrose annual net revenues are estimated at $500 million,” it said.
"The focus of Danish Crown's 4WD strategy is to lead our home markets in Northern Europe, further grow our position in Asia and to expand our leading position in casings globally," Jais Valeur, Group CEO of Danish Crown, said in the release. "I am certain that JBS, with its wide presence and access to raw materials in North America, is a perfect match for Plumrose USA and will help fortify its business to the benefit of many loyal customers.”
Meanwhile In Brazil
JBS in the company’s home location in Brazil is caught up in what some are calling a scandal. JBS says the media is overplaying its part in a meat safety scandal in that country.
As Reuters reports, Brazilian police on Friday raided JBS SA, BRF SA and dozens of other smaller rivals as part of a sting to catch meatpackers bribing inspectors and politicians to overlook unsanitary practices. They reportedly found evidence that some companies were manipulating certificates for meat exports to European markets. However, Cameron Bruett, a JBS spokesperson, asserts that JBS's part in the story should be minor.
"There are no allegations in the judge's order that JBS or its executive management violated food safety or product quality standards or engaged in any wrongdoing," Bruett said in the Reuters article. "The investigation is focused on the actions of Brazilian federal meat inspectors. JBS has been inappropriately connected to this story.
"JBS is not accused of selling tainted or rotten meat, no JBS-branded products were associated with the product tampering reported by the media and no actions have been taken against JBS or any of its executives or managers," Bruett says. Read the Reuters story here.