JBS USA Acquires Prepared Meats Firm Plumrose for $230M

The world’s largest pork exporter and Europe’s largest pork processor, Danish Crown A/S is selling its U.S. beacon, ham, and deli meat business, Plumrose USA, to animal protein processor JBS USA for $230 million, the companies announced in a joint press release Monday. The transaction is expected to close in the second quarter of 2017 pending regulatory review and approval and other closing conditions.

“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,” said Andre Nogueira, chief executive officer of the JBS USA Food Company. “We are excited to welcome the more than 1200 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 Royal Crown.”

Five Plumrose prepared foods facilities – one in Elkhart, IN, two in Council Bluffs, IA, another in Booneville, MS, and one in Swanton, VT – and two distribution centers in South Bend, IN and Tupelo, MS are included in JBS’ acquisition. The firm’s annual net revenues are estimated to be about $500 million.

“The focus on 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,” said Jais Valeur, group chief executive officer of Danish Crown, in a statement. “We have therefore decided to sell Plumrose USA. 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.”

JBS said the move was part of its strategy to strengthen its presence in prepared foods and branded products. The firm has acquired several consumer-facing businesses and brands since 2013, the release said. It is also a majority shareholder of Pilgrim’s Pride Corporation, the second-largest poultry company in the U.S.

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