NEW YORK – Officials with Pinnacle Asset Management announced on Jan. 17, the acquisition of Five Rivers Cattle Feeding, the largest cattle-feeding operation in the world, from JBS USA, based in Greeley, Colorado. The transaction was valued at approximately $200 million.
Five Rivers is made up of 11 feeding operations in six states, including Kansas, Oklahoma, Idaho, Arizona and Texas. The business was started in the 1920s. CEO Mike Thoren and his management team are expected to continue in their roles with the company, which has a long-term agreement to supply beef plants operated by JBS USA as part of its 900,000-head feeding capacity.
“The acquisition of the largest and most respected cattle feeding operation in the world continues Pinnacle's strategic path of investment and development of our diversified, global, physical commodity platform, of which livestock is a critical sector,” said Jason Kellman, managing partner and chief investment officer of Pinnacle Asset Management. “We are excited to work closely with our operating partner, Arcadia Asset Management and strategic partner, Ospraie Management to support Five Rivers’ talented management team.”
“The sale of the Five Rivers Cattle Feeding assets and farms is a strategic move that will allow JBS USA to more efficiently deploy working capital and focus on the company’s core food and value-added products businesses,” said Andre Nogueira, CEO of JBS USA.
In July, JBS announced it would sell its feed yard, Lakeside Feeders, and the adjacent farmland in Brooks, Alberta, Canada, to MCF Holdings Ltd. for C$50 million (US$40 million).
Completion of the Five Rivers acquisition is subject to US regulatory approval and as approval from the JBS SA board of directors and the securing of funding from Pinnacle.