Brazilian meat firm Marfrig Global Foods has taken a majority stake in US-based beef processor Iowa Premium as part of a consortium investment.

Marfrig’s indirect subsidiary NBM US Holdings undertook the transaction for a 51% share of Iowa Premium, which is located in the city of Tama and produces corn-fed Black Angus beef for the US market and 50 overseas destinations. 

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The 51% holding, which was valued at US$76.5m, will be transferred over to Missouri-based National Beef Packing Co., the North American business in which Marfrig acquired a 51% stake in April last year.

Other shareholders in National Beef also took part in the deal conducted for a total enterprise value of $150m and bought from US foodservice supplier Sysco Holdings – Jefferies Financial Group, US Premium Beef, TMK Holdings based in California and Iranian commodities producer NBPCo. 

Eduardo Miron, the chief executive of Marfrig, said of the deal: “This operation, together with the other shareholders of National Beef, demonstrates our commitment to sustainable growth and is an opportunity to elevate our participation in the operation of North America.”

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Iowa Premium has a slaughter capacity of 1,100 head of cattle a day and generates annual revenues of $650m. 

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Brian Friedman, the chairman of Jefferies, which holds a 30% stake in National Beef, added: “The collective investment in Iowa Premium reflects the optimism of the company in relation to the US beef market and the long-term focus of our partnership with Marfrig.”

Along with its 51% stake in Iowa Premium, Marfrig has also entered into a “long-term” supply agreement with Sysco.