JBS in Joint Venture with Jack Link's Beef Jerky
BRAZIL - Brazilian based beef processing giant, JBS S.A. is to form a joint venture with Jack Link's Beef Jerky to operate two meat snack facilities owned by JBS in Brazil.
14 September 2010
2 minute read
The Brazilian facilities are located in Santo Antonio de Posse and Lins, in the State of São Paulo, and carry state of the art equipment to produce meat snacks specific to the needs of consumers worldwide.
Under the terms of the agreement, JBS will supply the raw material at market prices and will jointly operate the facilities in Brazil with Jack Link`s.
JBS will then sell the semi-manufactured product to Jack Link`s Beef Jerky for further processing, packaging and distribution in the US and elsewhere. Proceeds from the JV will be shared on a 50/50 ratio and is expected to become operative before the end of this year.
“We are forming an ideal partnership in bringing together the largest beef producer with the number 1 meat snack team to grow this business at a time when consumers are turning more and more toward healthy protein concentrated snacks,” Wesley Batista, President and CEO of JBS USA commented.
“With our competitive production skills and with Jack Link`s meat snack expertise and brand strength, this JV will enhance business for both of us and grow the market for this healthy product,” Mr. Batista added.
In addition to the JV, JBS also announced that it has reached an agreement with the same Jack Link’s Beef Jerky group to sell its United States based meat snack plant in Mankato, Minnesota, for an undisclosed sum. This transaction is due to close by the end of this month and is subject to customary closing conditions.
“Partnering with JBS in Brazil enables us to be the best, jointly, at what we do, and the addition of the Mankato plant gives us the opportunity to expand on our existing production operations and enhance our ability to meet our customers’ needs,” said Jack Link, Chief Executive Officer and Chairman of the Board, Jack Link’s Beef Jerky.
“Essentially, this is a perfect match and we are very enthusiastic about its potential”, Mr. Links added.
