HM Capital Partners, the majority owner of Swift & Co., and J&F Participacoes, which owns 77% of Brazilian meat processor JBS S.A., announced this morning that HM and J&F have reached definitive terms under which J&F will acquire Swift in a transaction valued at $1.4 billion.
JBS is the largest beef processor in Latin America, and the combination of JBS and Swift will create the world's largest beef processor, according to the announcement. Swift is the third-largest beef and pork processor in the U.S. and is the largest beef processor in Australia.
The acquisition actually will be done for $225 million in cash and the assumption of $1.2 billion in Swift debt, the announcement said. The deal is scheduled to be completed in mid-July. Swift will retain its organizational identity, the announcement said.
Joesley Mendonca Batista, a J&F partner and chief executive officer of JBS, said the acquisition would be "a major step" in JBS establishing a global presence, especially in the Asian-Pacific region.