In this file:
· National Beef To Own Iowa Premium Beef LLC. [March 2019]
· Brazil's Marfrig to buy control of U.S.-based National Beef [April 2018]
National Beef To Own Iowa Premium Beef LLC.
Source: National Beef Packing Company, LLC.
March 11, 2019
KANSAS CITY, Missouri, March 11, 2019 – National Beef Packing Company, LLC (National Beef), today announced that it has approved a transaction that will result in it owning 100% of the ownership interests in Iowa Premium, LLC, (IP). The transaction is subject to customary conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close in the second quarter of 2019.
Iowa Premium, located in Tama, Iowa employs over 800 people and processes approximately 1,100 head of Black Angus fed cattle per day. The company is well known for marketing high quality beef products worldwide under several proprietary brands including Iowa Premium Angus® and Est. 8 Angus®.
“I am excited to expand our beef operations with a processing facility in Iowa and we look forward to strengthening IP’s relationships with the family farmers who produce the highest quality Black Angus cattle in the U.S.”, said Tim Klein, President and CEO, National Beef, in making the announcement. “Iowa Premium fits perfectly with our value-based marketing strategy as we continue to provide our customers with the very best beef products and programs.”
About Iowa Premium:
Iowa Premium LLC, located in Tama, Iowa, processes corn-fed Black Angus beef raised on family farms in Iowa and its neighboring Upper Midwestern states. The company specializes in USDA Choice and Prime grade beef and offers a full line of boxed beef products for domestic and international markets.
About National Beef:
National Beef Packing Company, LLC, based in Kansas City, Missouri, has operations in Liberal, Dodge City, and Kansas City, Kansas; Hummels Wharf, Pennsylvania; Moultrie, Georgia; North Baltimore, Ohio and St. Joseph, Missouri. National Beef, with approximately 8,400 employees, processes and markets fresh beef, beef by-products and consumer–ready products for domestic and international markets. In fiscal year 2018, National Beef generated sales of $7.5 billion. More information about National Beef is available at ww.nationalbeef.com.
Brazil's Marfrig to buy control of U.S.-based National Beef
Ana Mano, Reuters
April 9, 2018
SAO PAULO (Reuters) - Brazil’s Marfrig Global Foods SA (MRFG3.SA) said on Monday it would buy control of U.S.-based National Beef Packing Co for $969 million, in a deal that would make it the world’s No. 2 beef processor.
Marfrig also said it was seeking to sell an existing U.S. unit, Keystone Food LLC. The proceeds will be used to repay $1 billion in loans it is taking out to finance the acquisition, which involves Marfrig obtaining 51 percent of National Beef, the United States’ fourth-largest beef processor.
The deal helped propel Marfrig shares as much as 19 percent higher on Monday. Analysts said the resulting company would be less indebted and better positioned to profit in the global market for beef products.
However, U.S. agriculture anti-trust group the Organization for Competitive Markets lamented the increasing involvement of non-U.S. companies in the country’s beef trade.
“These foreign corporate giants will dominate the U.S. beef market, putting U.S. farmers and ranchers at their mercy,” it said in a statement.
The transaction will also give Marfrig broader access to the U.S. market almost a year after the United States banned imports of fresh Brazilian beef over safety concerns.
“It’s more of the same trend of these companies consolidating and the appetite for Brazil to diversify into the United States,” said Altin Kalo, a livestock analyst at Steiner Consulting Group.
“Brazil has faced barriers to sell beef into the U.S. and this is just one way to get exports to the U.S. If you can’t sell beef here, come in and buy a U.S. company.”
Marfrig’s Chief Executive Martin Secco told a news conference in Sao Paulo that he hopes the U.S. will lift the ban by the middle of this year. Currently Marfrig supplies the U.S. market with fresh beef it produces in Uruguay, he said...