JBS sells Texas Panhandle feed yards

By Justin Walker

Two Texas feedyards are among the assets a leading global food company plans to sell.

JBS USA announced this week its plans to sell Five Rivers Cattle Feeding, a collection of U.S.-based cattle feeding assets and farms, to Pinnacle Asset Management, L.P., a commodities and natural resources investment firm, for $200 million.

“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,” Andre Nogueira, CEO of JBS USA, said.

The Texas farms, located in the Panhandle, are two of 11 feedyards associated with the sale. More than 900,000 head of cattle go through Five Rivers, with feedyards in Arizona, Colorado, Idaho, Kansas, Oklahoma and Texas. The acquisition includes a long-term agreement to supply cattle to JBS USA beef processing plants.

“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,” Jason M. Kellman, managing partner and Chief Investment Officer of Pinnacle Asset Management, said. “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.”

Jordan Levi, managing member of Arcadia Asset Management, LLC, agreed with Kellman’s enthusiasm for the addition of Five Rivers.

“We are excited to combine Arcadia’s livestock marketing and risk management experience with the first-class management team at Five Rivers,” Levi said. “We believe that the complementary strengths of Pinnacle, Arcadia, Ospraie and Five Rivers will create significant value. We look forward to continuing the legacy of best-in-class production, livestock care and animal welfare, and environmental stewardship established by the more than 600 skilled professionals who comprise the Five Rivers Cattle Feeding team.”

The acquisition is subject to review and approval. JBS Five Rivers will continue to operate as normal until the transition is finalized.

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