The latest deal follows Jefferies’ original sale to Marfrig of a 48% stake in National Beef in June 2018
Image: Marfrig has agreed to acquire remaining stake in National Beef. Photo: courtesy of Tumisu from Pixabay.
Marfrig Global Foods has agreed to purchase the remaining 31% stake in National Beef from Jefferies Financial Group.
With two advanced processing plants, National Beef is involved in the supply of beef across the US, as well as worldwide.
The latest agreement is said to follow Jefferies’ original sale to Marfrig of a 48% stake in National Beef in June 2018.
As per terms of the deal, Jefferies will secure $970m in cash, of which $860m from Marfrig and $110m from final distributions from National Beef.
Subject to limited and customary closing conditions, the deal is expected to be completed by the end of this month.
The transaction will result in a pre-tax gain of around $210m being recognised by Jefferies
The deal will result in a pre-tax gain of around $210m being recognised by the company, said Jefferies.
Jefferies president Brian Friedman and CEO Rich Handler said: “We have sold our interest in National Beef at what we consider an attractive price and in furtherance of our stated strategic goals of focusing and investing in Investment Banking, Capital Markets and Asset Management, simplifying our overall company, reducing volatility and lumpiness in our results, and returning excess capital to shareholders.
“With this sale, we bring to a close Jefferies’ incredibly successful investment in National Beef. Having initially invested $868 million to acquire 79% of National Beef eight years ago, we persevered during National Beef’s severe downturn and were rewarded with strong cash distributions from operations, and now the sale of our remaining interest.”
Marfrig Global Foods is a major beef producer with 22 primary processing units, 12 further processing units and eight distribution centres in Brazil, Argentina, Uruguay, Chile and the.
With the processing capacity of 232.000 tonnes per year, the company markets its products in around 100 countries across the world.