Sign up for the Powder & Bulk Solids Weekly newsletter.
April 10, 2018
2 Min Read
A National Beef facility in Kansas. Image courtesy of Google Maps
Brazilian meat processing corporation Marfrig Global Foods is poised to become the world’s second biggest processor of beef following the announcement of a $969 million deal to acquire a 51% ownership stake in Kansas City, MO-based National Beef Packing Company LLC.
The definitive agreement between National Beef’s owner, investment holding company Leucadia, and Marfrig was announced in separate press releases on Monday.
Leucadia said it will sell 48% of National Beef to Marfrig for $900 in cash and that other shareholders will sell an additional 3%. The New York-based firm will retain 31% ownership in the meat processor.
“We believe that National Beef was an outstanding company, but was too large and concentrated of an investment for Leucadia. We were patient and persevered as National Beef went through an exceptional downturn and then we navigated deliberately toward a transaction that would achieve our near-term and long-term objectives,” the investment holding company’s chief executive officer, Rich Handler, said in a statement.
Reporting sales of $7.3 billion last year, National Beef exports its products to 40 countries, including South Korea and Japan. Marfrig said the combined sales of the firms following the transaction will total $13 billion.
“The acquisition of National Beef represents the realization of a unique opportunity, said Martin Secco, the Brazilian company’s chief executive officer, in a press release. “With the transaction, we will have operations in the world’s two largest beef markets, will gain access to extremely sophisticated consumer countries and will be able to grow while maintaining rigorous financial discipline.”
National Beef’s current chief executive officer Tim Klein is slated to remain in his present position.
For more news headlines, articles, and equipment reviews, visit our Equipment Zones
You May Also Like
Beumer Group Grows Presence in CanadaFeb 21, 2024|1 Min Read
Illinois Blower Rebrands and Merges SubsidiariesFeb 21, 2024|1 Min Read
Innovative Waste Processing with Integrated Air Filtration SystemFeb 21, 2024|3 Min Read
GEA Investing $20M in Alt Protein Tech CenterFeb 21, 2024|2 Min Read