Brazilian meat group JBS has entered an agreement to acquire Cargill's US pork business in a deal worth US$1.45bn.
The company said the acquisition would enable JBS to meet growing global demand for "high quality", "innovative" fresh and frozen pork products.
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Martin Dooley, president and COO of JBS USA Pork, said that the agreement was a "strategic investment" in the "long term growth" of JBS's US and global pork business. "This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers. The strength and success of Cargill's pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base," he commented.
The acquisition will see JBS take control of two Midwest processing plants, in Iowa and Illinois. In 2014, these facilities processed 9.3m hogs, JBS revealed. The purchase also includes five feed mills and four hog farms.
JBS first entered the US pork sector in 2007, when it acquired local processor Swift & Co. The company's brands include Swift and Swift Premium.
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The news follow's last week's announcement that JBS will expand in the European poultry sector with the acquisition of UK-based Moy Park from Marfrig.
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