See inside: One of the worlds largest cattle feeding operations sold for $200m
Operation has a combined capacity of more than 980,000 head of cattle
The world’s largest meatpacker, has agreed to sell its Five Rivers cattle feedlots in the United States to affiliates of Pinnacle Asset Management LP for about $200 million, the company said in a securities filing on Wednesday.
The acquirer of JBS Five Rivers Cattle Feeding LLC will sign long term contracts to supply cattle to JBS’ meatpacking units in the United States, the filing added.
JBS said the proceeds will be used to reduce its debt.
Five Rivers, the biggest U.S. cattle feeding operation, has a combined capacity of more than 980,000 head of cattle and locations in Colorado, Kansas, Oklahoma, Texas, Arizona, and Idaho, according to its website.
It handles nearly 10pc of cattle placed annually on U.S. feedlots, according to the Livestock Marketing Information Center.
Five Rivers also manages a 75,000-head capacity feedyard in the Canadian province of Alberta.
JBS bought Five Rivers from Smithfield Foods Inc, the world's biggest pork producer, in 2008, along with other beef assets.
Cargill Inc, another major U.S. beef processor, also recently exited the cattle feeding business.