US Premium Beef LLC (USPB) and National Beef Packing Company LLC announced that the owners of National Beef have entered into a membership interest purchase agreement with Leucadia National Corporation under which Leucadia will acquire about 79% of the outstanding ownership interests in National Beef. Operations and management structure of National Beef will remain unchanged.
“This transaction will enable us to address the liquidity desires of USPB’s diverse producer ownership base while maintaining our highly successful cattle supply system and a sizable investment in beef processing,” said Steve Hunt, chief executive officer of USPB. “Leucadia is a diversified holding company engaged in a variety of businesses; its broad and deep experience will enhance our partnership. Our goals for the future of National Beef are aligned, and we look forward to a long and successful partnership.”
Tim M Klein, president and CEO of National Beef, will continue in that role upon completion of the transaction.
“I look forward to Leucadia joining our ownership group and bringing its unique perspective to our industry,” he said. “The addition of Leucadia will widen the scope of opportunities available to us and will further strengthen our ability to expand our business and solidify our position as the premier global beef processor.”
The transaction is subject to certain conditions and will require customary regulatory approvals. It is expected to close by the end of calendar year 2011.
USPB is a producer-owned beef company formed in 1996 with the objective of aligning producers with consumers through processing. More than 2,000 producers from 35 states have used its integrated supply system. More information about USPB is available at www.uspremiumbeef.com.
National Beef, based in Kansas City MO, has operations in Liberal, Dodge City, and Kansas City KS; Brawley CA; Hummels Wharf PA; Moultrie GA; and St Joseph MO. With about 9,100 employees, the firm processes and markets fresh beef, case-ready beef, and beef by-products for domestic and international markets. More information about National Beef is provided at www.nationalbeef.com.
