1. J&F Participacoes SA, which controls JBS SA, Latin America's biggest meat producer, agreed to acquire Swift & Co. of the U.S. for $225 million in cash to create the world's largest beef and pork processor.
2. It will assume $1.2 billion in Swift debt plus all transaction-related expenses.
3. It will gain a broader supply base. Swift has four feedlots producing 198,000 cattle a year, three pork plants and one lamb slaughter facility. Swift Australia has four beef plants.
3. It will gain quick entry into premium markets in the US, the world's top consumer of beef, and Asia. Swift's Australia business sells to Asian countries including Japan and South Korea (South American beef exporters are banned from Asian markets because of the presence of foot-and-mouth disease in their herds)
4. It will ensure Swift sells the finished meat products directly to supermarkets
Revenue is in finding even side entrances to key markets
[Click here for full story at: BLOOMBERG.COM]
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