Pinnacle completes $200M acquisition of Greeley-based Five Rivers Cattle Feeding

GREELEY — Pinnacle Asset Management LP,  a New York-based commodities and natural-resources investment firm, has completed its acquisition of Five Rivers Cattle Feeding from Greeley-based JBS USA for $200 million. The deal, announced Jan. 17, became final March 16.

Five Rivers, also based in Greeley, includes a collection of cattle-feeding assets and farms. As part of the transaction, Five Rivers entered into a long-term agreement to supply cattle to JBS USA beef-processing plants.

Five Rivers Cattle Feeding is the largest cattle-feeding operation in the world, with roots in the United States dating back to the 1920s, encompassing 11 feed yards across Arizona, Colorado, Idaho, Kansas, Oklahoma and Texas, and a feeding capacity of more than 900,000 head of cattle.

SPONSORED CONTENT

How dispatchable resources enable the clean energy transition

Platte River must prepare for the retirement of 431 megawatts (MW) of dispatchable, coal-fired generation by the end of the decade and address more frequent extreme weather events that can bring dark calms (periods when there is no sun or wind).

Five Rivers will continue to be led by its current management team, including CEO Mike Thoren.

“We are pleased to have completed this transaction and believe Five Rivers has significant opportunities for growth,” Jason Kellman, managing partner and chief investment officer of Pinnacle Asset Management, said in a prepared statement. “We look forward to working closely with Mike and his talented team to build upon Five River’s position as the leading cattle feeding operation in the world.”

RELATED: Beef production in U.S. expected to continue growth

Pinnacle will work with partners Arcadia Asset Management LLC in Oklahoma and Ospraie Management LLC in New York to support Five Rivers’ management team.

Five Rivers employs 600 worldwide. The company operates four feedlots in Colorado: Gilcrest Feedlot in LaSalle, Kuner Feedlot in Kersey, Yuma Feedlot in Yuma and Colorado Beef in Lamar.

Sale of Five Rivers came as global JBS operations divest $1.8 billion in assets in the wake of a bribery scandal in Brazil, which saw the company fined $3.1 billion and several JBS executives jailed.