JBS USA Food Company has entered into an agreement to sell Five Rivers Cattle Feeding’s feedlot operations in the US.

The feedlot has been sold to affiliates of Pinnacle Asset Management, for approximately US$200m.

Included in the sale is the market value of silage and grain inventories which is subject to adjustments by working capital variation at closing.

Coupled with the acquisition of Five Rivers’ shares, the buyer will also sign a long-term contract to supply cattle to JBS in North America, the company said in a statement on Thursday.

The conclusion of the sale is subject to the usual regulatory approvals and adjustments, including corporate approvals, the buyer securing the relevant funding and approval by US antitrust authorities.

JBS will use a portion of the proceeds to further reduce its debt in Brazil subject to its stabilisation agreement, as announced in July of last year.

Read more

JBS continues asset sell-off

JBS sells off further assets in Canada