Pinnacle Asset Management, L.P., a New York-based commodities and natural resources investment firm, announced plans to acquire the U.S.-based cattle feeding assets and farms, collectively known as Five Rivers Cattle Feeding, from JBS USA, Greeley, Colo., for approximately $200 million.
Five Rivers Cattle Feeding is said to be the largest cattle feeding operation in the world. The transaction includes 11 feed yards across Arizona, Colorado, Idaho, Kansas, Oklahoma and Texas, with feeding capacity of more than 900,000 head of cattle and a long-term agreement to supply cattle to JBS USA beef processing plants. The current Five Rivers management team will remain in place, led by president and CEO Mike Thoren, to ensure business continuity and build upon Five Rivers’ strong track record of innovation and stewardship.
“The sale of the Five Rivers Cattle Feeding assets and farms is a strategic move that will allow JBS USA to more efficiently deploy working capital and focus on the company’s core food and value-added products businesses,” says Andre Nogueira, chief executive officer of JBS USA. “The transaction concludes the divestment program previously announced and unanimously approved by the JBS S.A. board of directors, and more favorably positions the company for future opportunities. The long-term partnership with Pinnacle will ensure JBS USA’s continued ability to produce high-quality beef products, including natural, certified-humane, raised without antibiotics, source-verified and traditional products, enjoyed by customers and consumers around the world.”
“The acquisition of the largest and most respected cattle feeding operation in the world continues Pinnacle's strategic path of investment and development of our diversified, global, physical commodity platform, of which livestock is a critical sector,” says Jason Kellman, managing partner and chief investment officer of Pinnacle Asset Management. “We are excited to work closely with our operating partner, Arcadia Asset Management, and strategic partner, Ospraie Management, to support Five Rivers’ talented management team.”
Five Rivers will continue to operate as usual, including the purchasing of cattle and commodities in the ordinary course of business, until the closure of the transaction. In addition, JBS USA will continue agreements to purchase cattle from feed yards associated with Five Rivers Cattle Feeding operations.