J&F Investimentos SA

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J&F Investimentos, a private investment holding company, is owned by the Batista family of Brazil. Founded in 1953, and based in São Paulo, Brazil, the company is involved in myriad business endeavors, such as agribusiness, manufacturing, marketing and sales, electricity generation, waste management, real estate, and publishing, among others.

J&F Investimentos is partly a large agribusiness company that is involved in all aspects of the purveyance of beef, pork, poultry, and sheep food commodities, including animal rearing, slaughter, refrigeration, processing, marketing, sales and delivery. J&F Investimentos owns JBS SA, the world's largest meat packer. The company also manufactures and sells food products such as dairy, pasta and noodles, vegetable oils, yogurt, juices, sugarcane and cereal crops, and animal feed.

Other activities involve the manufacture and sales of aluminum cans, plastic resins, biodiesel, various leather products, cleaning and hygiene products, and glycerin. There are myriad additional businesses and endeavors, including the purchasing and selling of various products such as palm oil, tallow and soy grains, electricity generation from biomass, pulp production and distribution, industrial waste management, consulting services, real estate acquisitions, sales and leasing, publishing agribusiness information, amongst others.

JBS SA

JBS-SA.svg
JBS is a Brazilian producer of beef, with 400+ production sites worldwide. JBS is the largest meat packing company in the world; it is also the 3rd-largest meat processing company in the USA, behind Tyson Foods and Cargill Meat Solution Corporation.[1]

Products include beef and pork as well as prepared frozen products (cooked meats, sausages, mortadella, etc). Products are marketed with food-processing industrialists, food retailers, supermarkets, restaurants, etc. JBS also manufactures poultry products, milk products, leather items, hygiene products, pets foods, canned foods, etc.

Company

Shareholders

Total float: 34.9%
Source: MarketScreener.svg, May.2020
† BNDESPAR is the wholly-owned investment arm of Brazil‘s State Development Bank BNDESWikipedia-W.svg, created to manage the Bank's interests in companies.

Timelines

The family of Jose Batista Sobrinho controls JBS SA, which has grown rapidly from a regional beef producer into world’s largest meatpacker through a series of acquisitions largely funded by the Brazilian govt. Through its holding company, J&F Investimentos SA, the family also controls pulp and paper company Eldorado Brasil Celulose SA, dairy product maker Vigor Alimentos SA, shoe and apparel manufacturer Alpargatas SA, online lender Banco Original SA and cosmetics and cleaning product maker Flora. J&F is also involved in the property, media and energy sectors. Jose Batista Junior controls a separate, beef-focused business group.

Media coverage of the Batista family often focuses on their rural origins and blue-collar upbringing. They present themselves as hyper-successful butchers, rather than owners of what has essentially become a state-backed investment fund. There is some truth to the rustic image – Jose Batista Sobrinho speaks with a country accent and boasts that he put his children to work in slaughterhouses as teenagers. But while the Batistas prefer to talk about their butchering skills, their business owes more to aggressive deal-making and govt financing.

The company had govt ties early on, obtaining contracts to supply beef to workers building the new capital, Brasilia. Most of the company’s expansion, however, has come under the leadership of his three sons: Jose Batista Junior, Wesley and Joesley.

Amid difficulties in Brazil, the Batista family is working to refocus JBS overseas. JBS announced in May that its overseas holdings and some of its Brazilian assets would be listed on the New York Stock Exchange as JBS Foods International. It cited access to capital as the motivation, but the move may also offer some insulation against political and legal hazards in Brazil.

Corruption investigations revealed that the family's defining talent was cultivating and bribing officials in exchange for financing, tax breaks, lax inspection and other benefits, and it is now struggling to avoid prison. Brothers Wesley and Joesley signed plea bargains in May.2017, and J&F Investimentos reached a leniency agreement after its executives admitted to massive corruption, such as illegal political contributions to 1,800+ candidates. However, revelations of undisclosed offenses threaten to new prosecutions.ref

  • Dec.2018: J&F Investimentos SA agreed to sell its transmission lines to Transmissora Aliança de Energia Elétrica SA.ref
  • ?date?: Cargill Pork LLC acquired.
  • Jan.2018: Five Rivers Cattle Feeding LLC, the US feedlot business, was sold to Pinnacle Asset Management LP.
  • Oct.2017: Vigor Alimentos SA, 72.35% owned by J&F and 19.43% owned by JBS, was sold to Mexico’s Grupo Lala SAB de CV.
  • Sept.2017: Moy Park: J&F sold the company to its subsidiary Pilgrim’s Pride Corporation.
  • Sept.2017: Eldorado Brasil Celulose was sold to Paper Excellence BV, controlled by Indonesia’s Widjaja family.
  • Sept.2017: Fraud etc: Joesley Batista and J&F executive Ricardo Saud are preventively arrested for concealing information. Wesley Batista was arrested for insider trading.
  • Jul.2017: Divestments: JBS sold its beef operations in Argentina, Paraguay and Uruguay to Minerva SA. * Jul.2017: Alpargatas SA: J&F sold the group to a consortium of Brazilian investors led by the Moreira Salles family: Cambuhy Investimentos Ltda, Itaúsa Investimentos Itaú SA and Brasil Warrant Gestão de Investimentos Ltda.
  • Mar.2017: Fraud etc: Mário Celso Lopes was detained in relation to fraud investigations. Joesley Batista is barred from holding any position at J&F-controlled companies.
  • Mar.2017: Plumrose USA Inc, a US processed meat producer, was acquired from Danish Crown AmbA.
  • Dec.2016: JBS Foods International BV was established as a holdco for the group’s assets outside Brazil and Seara.
  • Nov.2016: JFC LLC, a Minnesota-based poultry slaughterhouse, was acquired from Maschhoff Family Foods LLC.
  • Oct.2016: Blessed Holdings LLC: Wesley and Joesley Batista each acquire a 50% stake in the holdco. The announcement was not made until May.2017, post-examination of their tax returns by prosecutors overseeing their leniency agreement.
  • 2015: Primo Smallgoods Pty Ltd, an Australian-based processed meat producer, was acquired.
  • 2015: Acquisitions: JBS USA acquired several pork slaughterhouses and processing units in 5 US states from Cargill Meat Solutions Corporation.
  • Moy-Park.svg
    Moy Park Ltd:
  • 2015: Alpargatas SA, a shoe and apparel group, was acquired from Camargo Corrêa. The deal was 100% financed by Caixa Econômica Federal.
  • 2014: Acquisitions: JBS acquired the Mexican and Brazilian poultry operations of Tyson Foods Inc, pork producer Sul Valle Alimentos Ltda, poultry producers Frinal SA Frigorífico e Integração, Granja Eleven Ltda, Novagro Granja Avícola Ltda and Avebom Indústria de Alimentos Ltda, two export-focused poultry processing units from Céu Azul Alimentos Ltda, a slaughterhouse in Mato Grosso do Sul state, and stakes in poultry producers Big Frango Indústria e Comércio de Alimentos Ltda, Nutribig Administração e Participações Sociais SA and Agrícola Jandelle SA.
  • 2014: Fratelli Dorazio Investimentos SA: JBJ acquired a controlling stake in the company, which owned Mataboi Alimentos Ltda, a slaughterhouse company in judicial recovery.
  • 2014: JBJ Agropecuária Ltda was established by José Batista Júnior.
  • 2013: Canal Rural Produções Ltda, a TV channel, was acquired.
  • 2013: Comércio e Indústria de Massas Alimentícias Massa Leve Ltda, a ready-made meals company, was acquired.
  • 2013: Tramonto Agroindustrial SA and Agroveneto SA, two poultry producers, were acquired.
  • 2013: Seara Alimentos SA and Zendaleather SA were acquired from Marfrig Alimentos SA.
  • 2013: FIP Bertin’s indirect stake in JBS is restructured into a 24.75% stake in J&F, ending a dispute.
  • 2012: BNDES transferred a 10.07% stake in JBS to Caixa Econômica Federal, decreasing its stake to 19.85%.
  • 2012: J&F acquired MCL Empreendimentos’ 25% stake in Eldorado. Eldorado issued debentures to pension fund FI-FGTS and Caixa Econômica Federal.
  • 2012: Doux Frangosul SA: JBS leased the assets of the company from its parent, France’s Groupe Doux SA, enabling JBS to enter the Brazilian poultry market.
  • 2011: Bertin Higiene e Limpeza was acquired by J&F. The deal included 8 cosmetics and 7 cleaning products brands, which were incorporated into Flora.
  • 2011: Banco Original: J&F acquired Banco Matone, partly funded by a loan from deposit-insurance organisation Fundo Garantidor de Créditos. Banco Matone was merged with Banco JBS to create Banco Original, which focused on agribusiness lending.
  • 2011: Florestal do Brasil was acquired by Eldorado, along with a BNDES loan to establish a pulp factory in Mato Grosso do Sul.
  • 2011: BNDES increased its stake from 17% to 30.4%, by converting debentures into shares.
  • 2010: Eldorado Brasil Celulose SA, a pulp and paper producer, was established.
  • 2010: Tatiara Meat Company Pty Ltd, an Australian lamb producer, was acquired.
  • 2010: Rockdale Beef Pty Ltd, a beef slaughterhouse, was acquired.
  • 2010: McElhaney Cattle Co Inc, an Arizona-based feedlot, was acquired.
  • 2010: Toledo International NV, a Belgium-based beef distributor, was acquired.
  • 2009: Pilgrim’s Pride Corporation: JBS acquired a 64% stake in the Texas-based poultry producer via a share swap with meat-focused conglomerate Bertin SA. Holdco FB Participações SA was formed, co-owned by the Bertin and the Batista families, giving the Bertin family an initial 28.7% indirect stake in JBS. The Bertin deal included dairy company Vigor Alimentos SA, which became a subsidiary of J&F. Via FIP Florestal, Petros and Funcef each acquired a 25% stake in Florestal do Brasil. In 2010, JBS raised its stake in Pilgrim’s Pride to 67.27%.
  • 2008: Banco JBS was established as a financial services arm.
  • 2008: Inalca SpA: JBS acquired a 50% stake in the Italian processed meat producer from Cremonini SpA. This stake was sold back to Cremonini in 2011.
  • 2008: Tasman Group Services Pty Ltd and Industry Park Pty Ltd, two Australian companies, were acquired. The deal included 6 slaughterhauses.
  • 2008: Five Rivers Cattle Feeding LLC, a feedlot operator, was acquired from Smithfield Foods Inc. To finance the acquisitions, BNDESPar and SOE pension funds Petros and Funcef formed Fundo de Investimento em Participações PROT, which acquired a 14.3% stake in JBS.
  • 2008: Smithfield Beef Group Inc, a beef processing company, was acquired from ??, and renamed as JBS Packerland Inc.
  • Jul.2007:
    Swift-and-Company.pngDeals-Arrow-Left.svg
    Swift & Company, the USA's 3rd-largest beef and pork processor, was acquired from Conagra Foods Inc, HM Capital Partners LLC (Hicks, Muse, Tate & Furst) and George N. Gillett JrWikipedia-W.svg's Booth Creek Management Corporation. Renamed as "JBS USA Holdings Inc". BNDES supported the deal, purchasing a 12.9% stake. The acquisition made JBS Swift Group the largest beef processor in the world.[2]
  • 2007: Florestal do Brasil SA: with MCL Empreendimentos Ltda (owned by Mário Celso Lopes), J&F Investimentos established the eucalyptus plantation company.
  • 2007: SB Holdings Inc, a Florida-based processed beef distributor, was acquired.
  • ?date?: BF Alimentos Ltda: Friboi Ltda and the Bertin group formed BF Alimentos Ltda. Friboi began exporting to Europe.
  • ?date?: JBS SA: the company was renamed and listed on the São Paulo stock exchange.
  • 2005: Swift Armour SA Argentina: (Swift Armour) an 85% stake was acquired via JBS Holding International Ltda, 40% of which was financed through a BNDES loan.
  • 2005: JBS Ltda: The company was renamed.
  • 2001: Friboi acquired several slaughterhouses, partly financed by a loan from BNDES, increasing annual production by 72%. BF Alimentos acquired a slaughterhouse in Três Rios, Rio de Janeiro.
  • 1999: With financing from BNDES, Friboi acquired slaughterhouse Mouran in Andradina, São Paulo state from Sadia, and began exporting chilled and frozen meat.
  • 1997: Sadia SA's slaughterhouse in Barra dos Garças, Mato Grosso state was acquired, with financing from BNDES. SadiaWikipedia-W.svg
  • 1980s: José Batista Jr, José Batista Sobrinho’s eldest son, took over management; under his leadership, Friboi Ltda expanded nationally.
  • 1980: Flora was created as J&F’s hygiene and cleaning division, with the brands Minuano and Albany. In 2007, Flora became an independent company within the J&F group. After acquiring Bertin group (2009) and Hypermarcas (2011), the company began to emerge in other market segments with the addition of brands such as OX, Francis, Neutrox and Mat Inset. Flora's portfolio comprises 17 brands and ~300 products. Webpage, Website
  • 1970: Slaughter plant in Luziana in Goiás state, near Brasília, where the country’s new capital was being built, was acquired.
  • 1968: First meatpacking plant was acquired in Planaltina, in the Distrito Federal.
  • 1960s: Friboi Ltda: Batista renamed his company; and acquired another slaughterhouse in Goiás state.
  • 1950s-1960s: The Brazilian govt provided tax incentives to attract companies to the region.
  • 1953: Casa de Carne Mineira: José Batista Sobrinho established a butcher's shop in Anápolis, Goiás state, as well as a small slaughterhouse.
Additional Sources: Our History. J&F Investimentos. Accessed Nov.10.2019. ♦ Shareholder Profile: Batista family fights to stay atop JBS as scandals deepen. DebtWire. Accessed Dec.02.2019.
ToDo: Operation Car Wash, Bribery, Swift, link, Vale

JBS USA Holdings Inc

ToDo: link

References

  1. ^ Made in the U.S.? Brazilian meat packers dominate U.S., global market. Leanna Cook, WDN Online, May.30.2020. Original archived on Jun.04.2020.
  2. ^ JBS S.A. Completes Acquisition of Swift & Company. Food Ingredients, Jul.16.2007.
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