US meatpacker Swift & Co in Brazilian hands
Latin America's largest beef processor, J&F
Participacoes from Brazil, will acquire Swift & Co, America's third-largest
beef and pork processor.
The acquisition will create the world's largest meatpacking
The transaction includes $225 million in cash and the
assumption by J&F Participacoes of $1.2 billion in debt plus
Joesley Mendonca Batista, a partner in J&F
Participacoes, said: "We are thrilled to acquire Swift & Company, and to be
able to create a combined enterprise that will be the world's leading processor
of fresh beef and pork products."
merger provides the Brazilian company access to major Asian markets like Japan
and South Korea, which have banned Brazilian product on fears of Foot-and-Mouth Disease
(FMD), through Swift's US and
"It is a major step for our group in
establishing a global presence. More importantly, Swift will provide us with
access to the Pacific region."
This January, the board of directors for Swift & Co
announced it was reviewing strategic and financial alternatives following a
series of unsolicited inquiries from various entities.
Swift's president and CEO said: "Nothing is more important to me and my
colleagues on the Swift management team than seeing Swift remain the strong,
stable, customer-focused company we are today."
"Joining J&F to
become the world's largest beef and pork processor, Swift should emerge even
stronger, and that is good news for our partnership, customers, suppliers and
Three pork plants
In the US, Swift
has three pork plants, four beef plants, a lamb processing facility, and a
further processing plant. In Australia, the company owns four beef plants and
four cattle feedlots. Last year, the company had sales of about $9
J&F has a controlling interest in JBS, Latin America's
largest beef processor. JBS is the maker of Brazil's Friboi meat brand. JBS has
21 facilities in Brazil and five plants in Argentina. The company had $1.9
billion in sales during fiscal 2006.
The transaction is subject to
regulatory approval and should be completed by July.
bid for pork producer Swift & Co (11 May
â€¢ Swift & Co
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