Marfrig completes purchase National Beef

Marfrig Global Foods announced in a press release on June 6 that it has received the necessary authorizations to purchase 51 percent of the National Beef Packing Company, LCC, based in Kansas City, MO. With the acquisition, Marfrig becomes the second largest beef processor in the world in terms of production capacity. The announcement of Marfrig’s purchase of National Beef was made in early April. The Brazilian company paid $969 million for a 51 percent stake, a figure financed by private bank Rabobank and also with the participation of Banco Bradesco and ING. A company press release in April noted that Marfrig was purchasing all of National Beef’s business segments which includes beef processing plants in Dodge City and Liberal, KS, consumer-ready operations in Hummels Wharf, PA and Moultrie, GA, as well as a leather tannery in St. Joesph, MO. National Beef was founded in 1992 and since 2011 has been controlled by Leucadia National Corporation, which held a 79 percent interest. Leucadia will remain a minority shareholder in National Beef, with a 31 percent interest. U.S. Premium Beef, an association of American producers, will hold 15 percent, and other shareholders will hold the remaining 3 percent. Leucadia and other investors have agreed not to sell their shares in National Beef for at least five years. Brazil-based companies now hold majority interests in two of the major meatpackers in the United States. The other Brazil-based U.S. meatpacker is JBS USA, a subsidiary of JBS SA. — WLJ