JBS SA completes Vigor sale
Oct. 26, 2017
by MEAT+POULTRY Staff
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Grupo Lala bought the company's shareholding interest in Vigor Alimentos for $250 million.
SÃO PAULO, Brazil – JBS SA has concluded its sale of the company’s stake in Vigor Alimentos, a large dairy business based in Mexico, to Grupo Lala S.A.B. de C.V. for R$1,112 million ($341 million) of which JBS is receiving approximately R$786 million ($241.07 million).
JBS said the company plans to use the proceeds from this transaction to reduce the company’s debt. The sale is part of a larger divestment program announced in June. The sale includes non-core and other assets expected to generate $1.8 billion in cash for JBS SA. Other assets in the program included Moy Park, a poultry processor based in Northern Ireland and the assets and farms belonging to Five Rivers Cattle Feeding.
Greeley, Colorado-based Pilgrim’s Pride Corp., a unit of JBS SA, acquired Moy Park in September. Five Rivers Cattle Feeding has a combined feeding capacity of more than 980,000 head of cattle with locations in Colorado, Kansas, Oklahoma, Texas, Arizona and Idaho, according to the company’s website. Five Rivers also manages a 75,000-head capacity feedlot in Brooks, Alberta, Canada on behalf of JBS Food Canada.
1 Brazilian real = 0.31 US dollar