The divestment is a bid to inject cash into the company.
SÃO PAULO, Brazil – The board of directors at JBS SA, the world’s largest meat packer, is considering a divestment program of non-core and “less strategic assets” that executives expect to generate R$6 billion ($1.8 billion) in cash for the company. This is in addition to the R$1 billion ($300 million) already announced from the sale of JBS operations in Argentina, Paraguay and Uruguay.

“Assets involved in the divestment program include: sale of its 19.2 percent shareholding interest in Vigor Alimentos SA; sale of its shareholding interest at Moy Park, and sale of Five Rivers Cattle Feeding assets and farms,” the company said in a news release. “The divestment program will reduce the company’s net debt and, consequently, its financial leverage, strengthening JBS’ financial structure.”

Vigor Alimentos is a Brazilian dairy and food company, and is the sixth-largest dairy company in Brazil. 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.

Moy Park is a poultry processor based in Northern Ireland and is a leading supplier of fresh and ready-to-eat products in the United Kingdom. The company’s customers include major retailers such as Tesco, ASDA, Sainsbury’s, Waitrose and others in addition to foodservice customers ranging from McDonald’s to KFC to Burger King and Pizza Hut.

The sale is subject to board approval and the consent of BNDESPar, a subsidiary of the National Economic and Social Development Bank (BNDES).