Pinnacle Asset Management’s $200 Million Acquisition of JBS’ Five Rivers Cattle Feeding feedlot operations


Faegre Baker Daniels represented JBS® USA in the sale of its Five Rivers Cattle Feeding feedlot operations to Pinnacle Asset Management.

Pinnacle Asset Management, L.P., a leading commodities and natural resources investment firm, have entered into an agreement to acquire the U.S.-based cattle feeding assets and farms, collectively known as Five Rivers Cattle Feeding, from JBS USA, a leading global food company, for approximately $200 million (USD).

Five Rivers Cattle Feeding is the largest cattle feeding operation in the world, with roots in the U.S. dating back to the 1920s. 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.

An orderly sales process will be conducted to ensure normal business operations during the transition. JBS 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.

Completion of the acquisition is subject to U.S. regulatory review and approval, approval from the JBS S.A. Board of Directors and Pinnacle Asset Management, L.P., securing the relevant funding.

Pinnacle Asset Management, L.P. is a private, New York-based alternative asset management firm focused on the global commodities markets with approximately $2.3 billion under management.

JBS® USA is a leading processor of beef and pork in the U.S., a leading processor of beef in Canada and a majority shareholder of Pilgrim’s Pride Corporation, the largest poultry company in North America, with operations in the U.S., Mexico, the U.K. Ireland and continental Europe.

FaegreBD advised JBS® USA in the transaction with Mike Abbott (Picture), Gretchen Miller Busch, Adam Hertzke, Melissa Economy, Devon Steinmeyer, Lisa Pugh, Megan Hladilek and Lynn Kornfeld.

Involved fees earner: Michael Abbott – Faegre Baker Daniels; Adam Hertzke – Faegre Baker Daniels; Devon Steinmeyer – Faegre Baker Daniels; Gretchen Miller Busch – Faegre Baker Daniels; Melissa Economy – Faegre Baker Daniels; Megan Hladilek – Faegre Baker Daniels; Lynn Kornfeld – Faegre Baker Daniels; Lisa Pugh – Faegre Baker Daniels;

Law Firms: Faegre Baker Daniels;

Clients: JBS USA Holdings, Inc.;

Avatar

Author: Ambrogio Visconti