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Home » About JBS » Press Releases » March 13, 2017

JBS USA Agrees to Purchase Plumrose USA From Danish Crown

March 13, 2017

Continued realization of Company strategy to diversify product portfolio and expand branded offerings

Acquisition expected to provide annual synergies of $25 Million

JBS USA today announced a definitive share purchase agreement with Danish Crown A/S (“Danish Crown”) to acquire the company’s U.S.-based bacon, ham and deli meat business, Plumrose USA, for $230 million (USD). It is anticipated that the proposed transaction would close during the second quarter of 2017, subject to regulatory review and approval, and customary closing conditions.

“Today’s announcement is further demonstration of our commitment to disciplined growth through strategic acquisitions that further diversify our product portfolio, expand our branded offerings and strengthen our direct relationship with consumers,” said Andre Nogueira, CEO, JBS USA Food Company. “Plumrose USA is a well-respected business with an outstanding professional team, a strong portfolio of branded, cooked and prepared foods, and first-class, well-invested assets in strategic geographic locations that complement our current business structure. We are excited to welcome the more than 1,200 dedicated team members of Plumrose USA to JBS and look forward to building on the legacy of high quality products and outstanding service established by Danish Crown.”

The acquisition includes five prepared foods facilities, including one in Elkhart, Indiana, two in Council Bluffs, Iowa, one in Booneville, Mississippi, and one in Swanton, Vermont, and two distribution centers in South Bend, Indiana, and Tupelo, Mississippi, respectively. Plumrose offers an array of branded, prepared foods including bacon, hams, sliced deli meats and cooked ribs. Plumrose annual net revenues are estimated at $500 million.

“The focus of Danish Crown’s 4WD strategy is to lead our home markets in Northern Europe, further grow our position in Asia and to expand our leading position in casings globally,” said Jais Valeur, Group CEO of Danish Crown. “We have therefore decided to sell Plumrose USA. I am certain that JBS, with its wide presence and access to raw materials in North America, is a perfect match for Plumrose USA and will help fortify its business to the benefit of many loyal customers. Plumrose USA is an excellent company, which has made significant progress over the past years and I would like to take this opportunity to thank the management and employees in Plumrose USA for their committed efforts.”

The announced transaction is a clear continuation of the JBS global strategy to increase its presence in the prepared foods and branded product categories. Since 2013, JBS has expanded its consumer-facing product portfolio through the acquisitions of Seara, a pork and poultry prepared foods business in Brazil; Andrews Meat Industries, a red meat solution provider in Australia; Primo Smallgoods, a leader in branded, prepared foods including ham, sausage and bacon products in Australia and New Zealand; Moy Park, a leader in innovative convenience products and prepared foods in the United Kingdom; Cargill Pork, which includes significant bacon production capabilities; and GNP Company, a leading provider of premium branded chicken products in the U.S.

“This is exciting news for Plumrose USA as JBS USA’s business is very complementary to ours and offers opportunities for us to grow and thrive,” said Dave Schanzer, CEO of Plumrose USA. “JBS USA has values similar to Plumrose USA and believes people make the difference. They believe that their greatest strength is not their physical assets or business model, but their people.”

Barclays acted as financial advisor to JBS in this transaction. Squire Patton Boggs acted as legal advisor to JBS.