Brazil’s JBS SA announced on Wednesday a proposed corporate reorganization that entails spinning off its international businesses outside Brazil into a new company headquartered in Ireland and listing it on the New York Stock Exchange.
“The proposed reorganization is a natural step in the continuing development of JBS as a leading Brazilian company in the global food industry,” said Wesley Batista, CEO of the global business. “We have carefully considered various strategic alternatives to enhance the value of our company and we believe that the proposed reorganization offers the greatest potential to deliver long-term value to our stakeholders,” Batista said.
Under the terms of the plan, Sao Paulo-based JBS SA will created a new entity, called JBS Food International, whose assets will encompass global operations, including Swift & Company, Pilgrim’s Pride and Brazil-based food processor Seara Alimentos. JBS’s Brazilian companies will be renamed JBS Brazil.
Wesley Batista, JBS SA chief executive officer, will be CEO of the new company. The existing management team will be maintained in its present form. Management positions at the new JBS Food International have yet to be determined.
JBS Foods International will have a base of assets spanning Argentina, the United States, United Kingdom and Australia with $35 billion in annual revenue and employing 115,000 people in more than four continents. JBS SA currently earns over 80 percent of annual revenue in U.S. dollars and employs over 240,000 people worldwide
JBS SA has submitted its plan in advance to the Brazilian Takeover Panel, which has agreed the reorganization complies with governance standards. The company will now seek approval from the New York Stock Exchange and shareholders. The reorganization could be finalized by November.
Wesley Batista and his brother Joesley, and three other siblings, control about 45 percent of JBS through a family investment vehicle. The reorganization makes JBS the first Brazilian multinational with a clear division of local and global assets.
