JBS puts domestic, foreign assets on sale
- Author: Zachary Reyes Jun 22, 2017,
Jun 22, 2017, 1:09
Following a careful assessment, the company said assets involved in the divestment program include: (1) the sale of its 19.2% shareholding interest in Vigor Alimentos S.A., (2) the sale of its shareholding interest at Moy Park and (3) the sale of the Five Rivers Cattle Feeding assets and farms.
The Divestment Program is meant to reduce net debt and deleverage the company, strengthening its financial position.
One of Northern Ireland's largest firms, Moy Park, has been put up for sale by owner JBS, as concerns mounted over funding options in the wake of Brazil's political corruption scandal. "The sale of feedyard assets will more closely align the JBS business model with key US competitors and allow the company to concentrate its efforts on its core food and value-added products businesses".
This month S&P Global lowered its long-term corporate credit rating on Moy Park to B+ and kept it on CreditWatch with negative implications following a similar rating action on its parent.
"Moy Park is a successful and growing food business with a solid financial standing", said Moy Park CEO Janet McCollum. "I also know that this will ensure our continued growth and stability well into the future".
"Our priority remains business as usual - delivering outstanding quality, innovation and service to our customers and consumers".
He added, "We would be very concerned that this announced sale, coming within a year of its previous acquisition by JBS, may open the door to venture capitalists".
Moy Park, one of Europe's biggest poultry producers, employs more than 9,000 people in Northern Ireland and is headquartered in Craigavon, County Armagh.
JBS stated it was selling the assets in order to raise around six billion Brazilian reais (£1.44 billion), which should help it "cut debt and reduce leverage".
JBS SA - the world's largest meat packer, whose US division is based in Greeley - is offering for sale assets of its subsidiary, Greeley-based JBS Five Rivers Cattle Feeding LLC, the world's largest cattle feeding operation.
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