Included in the acquisition are two Midwest meat processing plants – one in Ottumwa, Iowa and the other in Beardstown, Illinois, five feed mills, and four hog farms – two in Arkansas and one each in Oklahoma and Texas.
Martin Dooley, president and chief operating officer of JBS USA Pork, said the transaction would strengthen its position as a producer and supplier of all major proteins around the world.
"Today’s announcement of our agreement to purchase the Cargill pork operations is a strategic investment in the long-term growth of our domestic and global pork business and demonstrates our continued commitment to the US livestock sector," he explained.
"The strength and success of Cargill’s pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base."
In recent months Brazilian-based meat processor JBS has made a number of acquisitions, as it looks to grow its global businesses. In March this year JBS USA secured approval for the acquisition of Australian Consolidated Food Holdings Pty Ltd (Primo), and just last month Brazil-based Marfrig Global Foods announced it would be selling its Moy Park Europe poultry business to JBS SA, for approximately $1.5bn.
Todd Hall, senior vice-president at Cargill, said the two businesses complemented each other, and it was evident that JBS placed a great deal of value on growing this part of its company, and was willing to invest in its future.
The completion of the deal is subject to the relevant regulatory approvals.