KANSAS CITY, Mo. – National Beef Packing Co., along with shareholders from Marfrig Global Foods, announced on March 11 that it acquired beef processor Iowa Premium for $150 million. National Beef said it expects to close the transaction during the second quarter of 2019. Iowa Premium was previously owned by Sysco Holdings.
Marfrig Global Foods, which acquired a majority stake in National Beef last June, reported a 51 percent interest in the transaction, valued at $76.5 million.
“This joint operation with the other National Beef shareholders demonstrates our commitment to sustainable growth and is an opportunity to increase our participation in the North America operation,” said Eduardo Miron, CEO of Marfrig Global Foods.
The shares of Iowa Premium are now part of the National Beef capital. “The Iowa Premium collective investment reflects the company’s optimism about the US beef market and the long-term focus of our partnership with Marfrig,” said Brian Friedman, president of Jefferies Financial Group Inc., a partner with a 30 percent stake in National Beef.
With an annual revenue of approximately $650 million, Iowa Premium processes about 1,100 head of Black Angus cattle per day and employs 800 people at its Tama, Iowa, plant. The company sells its product under the brands Iowa Premium Angus and Est. 8 Angus.
“I am excited to expand our beef operations with a processing facility in Iowa and we look forward to strengthening IP’s relationships with the family farmers who produce the highest quality Black Angus cattle in the US,” said Tim Klein, president and CEO of National Beef. “Iowa Premium fits perfectly with our value-based marketing strategy as we continue to provide our customers with the very best beef products and programs.”
“Joint investment in Iowa Premium is a great opportunity for National Beef and to continue to provide high-quality beef to our customers. We are happy to be part of this long-term journey with Marfrig and the other National Beef partners,” said Stan Linville, CEO of US Premium Beef.
