Leucadia paid US$867.9m in cash for a majority stake in National Beef

Leucadia paid US$867.9m in cash for a majority stake in National Beef

US investment fund Leucadia National has acquired a majority stake in National Beef Packing Co., one of the country's largest beef processors.

Leucadia said yesterday (5 December) that it had acquired 79% of the business for US$867.9m.

Kansas City-based National Beef sells meat and beef by-products to retailers, foodservice providers, distributors and further processors in the US and internationally. The current owners of National Beef - US meat co-op US Premium Beef, NBPCo Holdings and the company's CEO Timothy Klein - will continue as minority owners in the business, Leucadia said.

The fund said it anticipates to complete the transaction by the end of the year and expects to continue operating with the management team currently in place.

After the announcement, shares of Leucadia rose 23 cents to close at $23.98.

In October 2009, National Beef set out plans to float on the US stock market but two months later decided against listing. The company blamed "weakness in the IPO market".

In February that year, JBS, the Brazilian meant giant, abandoned plans to buy National Beef. In March 2008, JBS agreed a $560m deal to acquire National Beef but oppostition from US regulators led the company to walk away from the acquisition.