Brazil-based company to buy Swift & Co.

by Keith Nunes
Share This:

SAO PAULO, BRAZIL — J&F Participacoes S.A., which has a controlling interest in JBS S.A., Latin America’s largest beef processor, has entered into an agreement to acquire Swift & Co., Greeley, Colo., the U.S.’s third-largest beef and pork processing company. The transaction will include $225 million in cash and the assumption by J&F Participacoes of $1.2 billion in debt plus all transaction-related expenses. The transaction is subject to regulatory approval and should be completed by July.

"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," said Joesley Mendonca Batista, a partner in J&F Participacoes and chief executive officer of JBS S.A. "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 past 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.

"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," said Sam Rovit, president and c.e.o. of Swift & Co. "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 employees."

In the U.S., Swift & Co.’s assets include four beef plants, three pork plants, a lamb processing facility, and a further processing plant. In Australia, the company owns four beef plants and four cattle feedlots. The company had sales of approximately $9 billion in 2006.

JBS S.A. has 21 facilities in Brazil and five plants in Argentina. The company had $1.9 billion in sales during fiscal 2006.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.








The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.