National Beef has acquired Iowa Premium for $150m, which will help to further boost its operations in North America.
Based in Tama and previously owned by Sysco, Iowa Premium has a daily processing capacity of 1,100 head of cattle. It has annual sales of around $650m.
In 2018, Brazil-based Marfrig acquired a 51% stake in National Beef for $969m, through its indirect subsidiary NBM.
For the Iowa Premium deal, the Brazilian meat firm will invest $76.5m.
As a result of the deal, shares in Iowa Premium will be incorporated into the capital of National Beef.
A long-term supply agreement has also been signed with Sysco, a US multinational company catering to the foodservice industry.
Marfrig Global Foods CEO Eduardo Miron said: “This joint transaction with the other shareholders of National Beef demonstrates our commitment to sustainable growth and is an opportunity to increase our interest in the North America operation.”
National Beef CEO and Marfrig CEO for North America operations Tim Klein said: “I am excited to expand our beef operations with a processing facility in Iowa and we look forward to strengthening the relationships with the family farmers who produce the highest quality black Angus cattle in the US.
“Iowa Premium fits perfectly with our value-based marketing strategy as the company continues to provide customers with the very best beef products and programmes.”
The other shareholders in National Beef are Jefferies Financial Group, US Premium Beef, TMK Holdings and NBPCo.
US Premium Beef CEO Stan Inville said: “The joint investment in Iowa Premium is a great opportunity for National Beef and for us to continue producing high-quality beef for our customers. We are happy to be part of this long-term journey with Marfrig and the other partners of National Beef.”
