JBS USA has agreed to acquire Plumrose USA, the bacon and deli-meats business of Denmark's Danish Crown, for $230m.
The acquisition is in line with JBS' plans to diversify its product portfolio and expansion of prepared foods and branded offerings.
Plumrose USA is the American bacon, ham and deli meat business of the Denmark-based pork exporting giant Danish Crown.
Based in Downers Grove, Illinois, Plumrose’s products include branded, prepared foods like bacon, sliced deli meats and cooked ribs, and hams. Its yearly net revenues are estimated at $500m.
JBS USA Food Company CEO Andre Nogueira said: “Plumrose USA is a well-respected business with an outstanding professional team, a strong portfolio of branded, cooked and prepared foods, and first-class, well-invested assets in strategic geographic locations that complement our current business structure.”
As part of the deal, JBS will acquire five plants that manufacture prepared foods from Danish Crown. These include the Elkhart facility in Indiana, two Council Bluffs facilities in Iowa, the Booneville facility in Mississippi, and the Swanton facility in Vermont.
Also, JBS will acquire Plumrose’s South Bend distribution center in Indiana and the Tupelo distribution center in Mississippi through the transaction.
Danish Crown Group CEO Jais Valeur said: “The focus of Danish Crown’s 4WD strategy is to lead our home markets in Northern Europe, further grow our position in Asia and to expand our leading position in casings globally.
“We have therefore decided to sell Plumrose USA. I am certain that JBS, with its wide presence and access to raw materials in North America, is a perfect match for Plumrose USA and will help fortify its business to the benefit of many loyal customers.”
The acquisition is expected to close in the second quarter following meeting of regulatory review and approval besides customary closing conditions.
