JBS plans major reorganization
GREELEY — The Brazilian parent of Greeley-based meat-packer JBS USA on Wednesday announced plans for a major reorganization that would see the local company become part of a new publicly traded firm listed on the New York Stock Exchange.
JBS SA (Bovespa: JBSS3) said it plans to spin off its businesses outside of Brazil into a new company called JBS Foods International, which multiple outlets have reported would be based in Ireland. Shares in JBS SA rose 21 percent Thursday in the wake of the announcement.
It’s unclear what impacts the move might have locally, and officials for JBS USA did not return calls on Thursday.
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JBS USA, the North American arm of JBS SA, is majority shareholder of Greeley-based chicken producer Pilgrim’s Pride Corp. JBS USA touts itself as the largest cattle feeder in the world.
The complex reorganization plan could see JBS Foods International become the parent company of JBS SA. JBS SA will retain the company’s businesses in Brazil, be renamed JBS Brasil and remain publicly traded under the plan.
JBS SA shareholders will receive one share of JBS Foods International for each JBS SA share they own. They will also be given the option of exchanging their shares in JBS SA for newly issued shares of JBS Foods International. If more than half of the JBS SA shares are traded in, that company would become a subsidiary of the new firm.
Current management, including JBS USA chief executive Andre Nogueira, would remain in place. JBS SA CEO Wesley Batista would serve as CEO of JBS Foods International.
JBS SA officials said there are several reasons for making the change, including giving the company more of a global profile and improving access to international equity and debt markets to remain competitive as global food markets continue to consolidate.
JBS SA for its first quarter reported a net loss of roughly $780 million versus a profit of $403 million for the same period last year. Revenue was up 30 percent to $12.6 billion.
