Brazil’s JBS completes acquisition of beef processor Independencia

Brazilian meat producer JBS has completed the acquisition of local beef processor Independencia for BRL268m ($142.8m).

As part of the terms of the deal, JBS paid $133m in cash and transferred about 23 million shares of its common stock.

The acquisition includes four beef processing plants, two hide processing plants, two storage and distribution centres and all Independencia brands.

In April 2012, JBS announced its plans to acquire the company’s beef business and made a BRL268m ($142m) offer, which included a combination of cash and stock.

Independencia, which had a debt of $1.2bn, filed for bankruptcy protection as part of its efforts to restructure its debt and remain in business.

This move was taken after the company witnessed a significant drop in its beef exports in 2009 and consequently had to halt production in 2010.

In 2011, the company’s creditors approved a plan to divest some of the assets to pay debt.

Independencia, established in 1977, is involved in the production of beef and its by-products; dry and salted beef, frozen and chilled meat, jerked beef, bovine leather and organic fertilizers. The company exports its products to Europe, Russia, the Middle East and Asia.

JBS, based in São Paulo, produces fresh, chilled and processed beef, chicken and pork and also sells by-products from the processing of these meats.

In January 2013, JBS announced its intention to acquire certain Canadian operations of meat packing firm XL Foods as well as its Lakeside beef packing facility in Brooks, Alberta, Canada, through its new subsidiary, JBS Food Canada.