U.S. Premium Beef has entered into an agreement with JBS to sell National Beef Packing Company, L.L.C. for $465 million in cash and $95 million in JBS common stock. All National Beef operations will be combined with JBS-Swift operations under the leadership of National Beef President Tim Klein, the new Chief Operating Officer of the new joint company.
"This transaction will enable our company to become a part of a leading multinational food company," says Steve Hunt, CEO of USPB. "Being able to diversify through JBS will put our company in a position to compete long term in an increasingly competitive environment. Additionally, as part of JBS, we will be in a strong position to grow USPB's successful integrated strategy. Our producer owners and other producers who market cattle through USPB will now have a more geographically diversified company with multiple locations to deliver the high quality cattle they produce for our value-added programs. This opportunity will establish a solid platform for future company growth."
Certain conditions and usual regulatory approval will be required before the transaction can be finalized.