Swift Goes Brazilian

[Oldtimer]

Earlier in the year Tyson and Texas Feeders (Engler) teamed up with a Brazilian Packing organization--now Swift sells out to a Brazilian firm...The handwriting is on the wall of who will be controlling the generic beef market of the world....

One more step in the New Worlds Order to have one provider of all food to the world and total fascist capitalistic domination...

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5/29/2007 9:13:00 AM


Swift & J&F To Create the World's Number-One Beef Processor

DALLAS & SAO PAULO, Brazil & GREELEY, Colo.--(BUSINESS WIRE)--HM Capital Partners LLC, a leading, Dallas-based private equity firm, J&F Participações S.A. ("J&F"), which owns 77 percent of Brazil's JBS S.A. (Bovespa: JBSS3), Latin America's largest beef processor, and Swift & Company ("Swift"), the world's third-largest processor of fresh beef and pork products, today announced that HM Capital and J&F have signed a definitive agreement under which J&F will acquire Swift in an all-cash transaction representing an enterprise value of approximately $1.4 billion.

The transaction value includes $225 million in cash for all Swift stock held by HM Capital and Booth Creek Management Corporation, its investment partner in the September 2002 acquisition of Swift from ConAgra Foods, Inc., and the assumption by J&F of approximately $1.2 billion in Swift debt plus all transaction-related expenses.

Edward Herring, a Partner of HM Capital, said: "This is a win-win transaction for everyone involved. For HM Capital, the proceeds from this transaction, coupled with our earlier leveraged recapitalization of Swift, will together produce a very attractive return for our investors. For J&F, the strategic combination of Swift and JBS — industry leaders with no market overlap — will create the world's leading beef processor. The transaction also will benefit Swift's customers, employees and business partners, by creating a combined Swift-JBS enterprise in which Swift will retain its organizational identity, customer and supplier relationships and substantially all of its employees and leadership team while becoming part of the world's largest beef processor."

Joesley Mendonça Batista, Partner of J&F and Chief Executive Officer of JBS S.A., said: "We are thrilled to acquire Swift & Company, and to be able to create a combined enterprise that will be the world's leading processor of fresh beef and pork products. It is a major step for our group in establishing a global presence. More importantly, Swift will provide us with access to the Pacific region. Given the attractiveness of the asset, we are glad that we could reach an agreement with HM Capital. And finally, we would like to thank Swift's management team for their stewardship of Swift during a very challenging time for the company and the entire beef industry. Thanks to them, to Swift's thousands of valued customers, and to the 20,000 loyal and hard-working Swift employees worldwide, Swift today remains a great company with what we believe is significant earnings and growth potential."

Sam Rovit, President and Chief Executive Officer of Swift, said: "Nothing is more important to me and my colleagues on the Swift management team than seeing Swift remain the strong, stable, customer-focused company we are today. Joining J&F to become the world's largest beef and pork processor, Swift should emerge even stronger, and that is good news for our partnership customers, our suppliers and our employees. I look forward to working closely with HM Capital and J&F to achieve a rapid completion of this transaction and a smooth, seamless transition to the new ownership structure."

HM Capital's financial advisor with regard to the transaction was JP Morgan and its legal advisor was Vinson & Elkins, LLP. Rothschild acted as J&F's exclusive financial advisor and Greenberg Traurig LLP and Velloza, Girotto & Lindenbojm as its legal advisors.

Completion of the transaction is subject to Hart-Scott-Rodino and other antitrust reviews and customary closing conditions, and is expected to occur in mid-July.

HM Capital, in partnership with Booth Creek Management Corporation, of Vail, Colorado, acquired Swift & Company — then known as ConAgra Meats Company — from ConAgra Foods, Inc. in September 2002. The original Swift & Company was founded in 1855.

About HM Capital Partners LLC

Based in Dallas, HM Capital is a private equity firm that leverages its sector expertise to acquire, change and build strategically relevant businesses. The firm is currently investing and managing more than $3.7 billion in equity capital.

About J&F Participações S.A.

J&F Participações is the controlling shareholder of JBS (Bovespa: JBSS3, market capitalization of $3.2 billion), the largest beef processor in Latin America and one of the largest exporters of beef in the world. JBS has operations in 23 plants in Brazil and 6 in Argentina. In 2006, JBS generated sales of nearly $1.8 billion and slaughtered more than 3.4 million head of cattle.

About Swift & Company

With nearly $10 billion in annual sales, Swift & Company is the third-largest processor of fresh beef and pork in the U.S. and the largest beef processor in Australia. Founded in 1855 and headquartered in Greeley, Colorado, Swift processes, prepares, packages, markets, and delivers fresh, further processed and value-added beef and pork products to customers in the United States and international markets. For additional information, please visit http://www.swiftbrands.com.

 

[skcatlman]

It is a global market we are now in. Get used to it. How long until the all other major US packers are foreign owned ? Hope you don't lose control as we did in Canada. But then again maybe that is what is needed for protectionist groups for a reality check.

 

[Oldtimer]

It is a global market we are now in. Get used to it. How long until the all other major US packers are foreign owned ? Hope you don't lose control as we did in Canada. But then again maybe that is what is needed for protectionist groups for a reality check.

Well since Canadians are against labeling their products for the consumers to make an informed decision- they must like the low prices provided by worldwide commodity meat... :roll:

Remember the Canadian market rides on the US one- and what do you think the price will be if the globalists can access huge quantities of commodity cattle/beef in Brazil for less than $60cwt- to ship thru NAFTA and pass off to the uninformed consumers of the US/Canada/ the world as US beef....

This is the reason we need the M-COOL law enforced now as a way to identify our beef from all the generic- and to promote and market our own born, raised, and slaughtered beef....

I don't think even rich subsidized Canucks can compete with the cheap labor and greatly reduced production costs of Brazil for producing generic beef.... ;-)

 

[regenwether]

Hey oldtimmer...go open a packing plant! . Not as cut and dry as you think. The Iowa Cattlemen tried to get a small plant going a few years back. You don't want to know the results. Labor and tons of $$$ is needed.

 

[skcatlman]

OT quit trying to spead you manure here.
First of all every canadian animal slaughtered for sale in canada is inspected by the CFIA and recives a grade and a stamp with the grade and product of Canada so we already label our product. :roll:
Second NAFTA stand for North American Free Trade Agreement and is between the US, Canada and Mexico. Last time i checked Brazil was in south america. So inform me how and when they moved to north america. Or are you out to try and blame someone else again. Or are your countrymen going to try to cheat us. :roll:
Third it is good to see you are admitting that the proposed COOL is nothing more than a a non-tariff trade barrier.
Fourth US producers recieve ten time the funding for Ag programs thru the US ag bill than Canadians do thru our government. Talk about subsides we only spend ten cents on the dollar of what your goverment does. :roll: :shock:
Lastly your dollar is sliding and the first shipments of beef to the E.U. is to go in early july. Why would we sell you beef when you pay $1.06 for a canadian dollar when a british pound is worth $2.11 canadian.
Thanks to R-CALFs actions we have toughened up and began to really add value to our beef . Have fun eating Brazillian beef. They won't get acess to our market as they have FAM disease and we don't so we don't have to let it in. And with our new SRM changes we will be able to shut our borders to foreign beef from a country with the same BSE status to any kind if they don't have superior SRM rules. So the US mixed with brazillian beef will be blocked . See what you guys have done. HA HA HA [/img]

 

[Oldtimer]

Thanks to R-CALFs actions we have toughened up and began to really add value to our beef . Have fun eating Brazillian beef. They won't get acess to our market as they have FAM disease and we don't so we don't have to let it in. And with our new SRM changes we will be able to shut our borders to foreign beef from a country with the same BSE status to any kind if they don't have superior SRM rules. So the US mixed with brazillian beef will be blocked . See what you guys have done. HA HA HA [/img]

If you look back in history--Canucks set the precedent on border closures involving NAFTA with their trade barriers in the form of Anaplas/Blue Tongue restrictions that called "ALL US Diseased".

USDA is already in the process of allowing Tyson to import beef from Argentina- and they have Foot and Mouth Disease in that country too...And once it comes into the US and is repackaged and stamped with the USDA label it will have wide open access to Canada or any other country being passed of as "US Beef"...
And they will do the same with the Brazilian beef in the near future...

And Saskartoon-- You know Canada can't do anything to upset the gravy train with the US, since Canada's product has no identity, having always ridden on the shirttails of the US cattleman and US cattle industry- having to come thru the US- get the USDA label to be passed off as US beef in order to be marketed... ;-) :lol:

 

[skcatlman]

First of all Canada imports no grind meats from the US for human consumption as your country is in a deficte it that meat category. So i won't worry about that cheap crap you are feeding your citizens coming up here.
As far as Ana abd BT that border closure was to keep the disease out of Canada not to restrict trade and it was well before NAFTA was signed anyways so get you facts straight. As well the US has a test and slaughter policy where as canada has a policy of erradication. So because the USDA is willing to let diseases run rampant in the US we try to protect our industryand you say that is a bad thing. Prime examples are TB, Brucellosis ,BT and Ana. Not to mention your BSE epidemice you deney having. :roll:
I never said your packers won't try just that they won't be able to sell into the Canadian market. The fact that the USDA is publishing reports that plants in the US are still taking downers and processing for human consumption is just more proof that public saftey is in question in the US.
I am sure the packers will want into the canadian market if the value of the Canadian dollar hits the mark projected by the economists about $1.20 by the new year. Yeah canada will be a lucrative market i am sure you would want into that market. and i am sure canadian cattle men will welcome US beef. LMAO :lol:
As for riding US shirttails maybe that WAS true but with the BSE border closure things have changed up here and by fall we will have more slaughter capacity than our production so too bad but quit living in the past.
Conerning canadian beef we have a good identity and we won't need the US market other than for feeders to feed and export to the EU soon . So while we will be eating Canadian AAA marbeled steak you can eat that great Brazillian and Argintinian burgers.
You were so worried about a flood of canadian cull cows a while ago i would like to know how with the exsisting thin margins US packers will be able to pay a 20% premium for the cull cows and ship the cattle to the US and still make a profit another on of you predictions that will never come to fruition.
The old saying may be coming true for R-CALF be careful of what you wish for you may just get it. :lol: :lol: :lol:
Remember R-CALF didn't want to trade with Canada in terms of cattle. Have fun with Brazil and Argentina.

 

[Oldtimer]

New Swift Owner to Raise Beef Cattle



By Pork news staff

(Wednesday, June 13, 2007)



The Brazilian meatpacking conglomerate â€" JBS â€" that recently purchased Swift & Co., is going to enter the beef production business. The company plans to build a $15.2-million beef production farm near San Paulo, Brazil.


JBS's $1.4 billion acquisition of Swift made it the world's largest meatpacker.



In the San Paulo system, the company intends to raise about 150,000 cattle to supply some of JBS' packing plants. This is a new and significant step for the company, which has previously only run slaughter and processing plants.



Meanwhile, Smithfield Foods officials say the company has put its beef packing expansion plans on hold, waiting to see what else JBS does. Smithfield officials have said, "we want to get bigger in beef."



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