JBS USA’s Five Rivers Cattle Feeding to be acquired for $200M

GREELEY – Affiliates of Pinnacle Asset Management LP, a commodities and natural resources investment firm based in New York, have agreed to acquire the U.S.-based cattle feeding assets and farms, collectively known as Five Rivers Cattle Feeding, from JBS USA in Greeley for approximately $200 million.

The transaction includes 11 feed yards across Arizona, Colorado, Idaho, Kansas, Oklahoma and Texas, with feeding capacity of more than 900,000 head of cattle and a long-term agreement to supply cattle to JBS USA beef-processing plants.

In Colorado, Five Rivers has four feedlots: Gilcrest Feedlot in LaSalle, Kuner Feedlot in Kersey, Yuma Feedlot in Yuma and Colorado Beef in Lamar.

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The current Five Rivers management team will remain in place, led by president and chief executive, Mike Thoren. Jason M. Kellman, managing partner and chief investment officer of Pinnacle Asset Management, said the company will work with its partners Arcadia Asset Management LLC in Oklahoma and Ospraie Management LLC in New York to support Five Rivers’ management team.

“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, chief executive of JBS USA, said in a prepared statement. “The long-term partnership with Pinnacle will ensure JBS USA’s continued ability to produce high-quality beef products, including natural, certified humane, raised without antibiotics, source-verified and traditional products, enjoyed by customers and consumers around the world.”

JBS Five Rivers will continue to operate as usual, including the purchasing of cattle and commodities until the closure of the transaction. In addition, JBS USA will continue agreements to purchase cattle from feed yards associated with Five Rivers Cattle Feeding operations.

Completion of the acquisition is subject to U.S. regulatory review and approval, approval from the JBS SA board of directors and Pinnacle Asset Management LP securing funding.