Question

1. Company History and Description of JBS companies :
(a) Detailed account of the firm's history including why how it started
(b) Any significant milestones in the company's development
(c) Organizational ownership structure
(d) Description of products and services

Answer 1

Answer a)

1953–2000: Formation in Brazil

JBS was initially established as a slaughtering business by rancher José Batista Sobrinho, a rancher in Anápolis, Brazil, in 1953. (The company's name comes from the founder's initials.) Sobrinho's business began to expand when the establishment of Brazil's capital, Brasilia, brought a new market within reach of his ranch. Over the late 1960s Sobrinho expanded into owning slaughterhouses; then, in the 1980s, the company began expanding within Brazil and purchasing other meat processing companies. In subsequent years, the company has grown to become the world's largest company in the beef sector with the acquisition of several stores and food companies in Brazil and the world.

JBS has three Subsidiary:

JBS USA, Seara Foods and JBS Foods International

JBS USA:

JBS USA Holdings, Inc. is an American food processing company and a wholly owned subsidiary of JBS S.A, a Brazilian company that is the world's largest processor of fresh beef and pork, with more than US$50 billion in annual sales as of 2017. The subsidiary was created when JBS entered the U.S. market in 2007 with its purchase of Swift & Company.JBS USA is based in Greeley, Colorado.

Seara Foods:

Seara Foods is a Brazilian food processing company. It specializes in the development and distribution of meat products. The company was founded on November 18, 1956 in the town of Seara, Santa Catarina, Brazil.

The company became the largest exporter of chicken in the country thanks to export its business of meat and poultry products to other continents like Europe, Asia, Middle East and the Far East. In turn, the company specialized in Brazilian and Latin American market with products such as sausage, bacon, hamburgers, ham, bologna and ready meals among others. In 2009, the Brazilian multinational corporation Marfrig Group acquired the company from Cargill Inc. and in 2013 Marfrig sold Seara Brasil (part of Seara Foods) to JBS the global protein leader which became #1 Poultry producer in the World and #1 Beef producer in the World.

JBS Foods International:

JBS Foods International engages in the food business internationally. It operates through four segments: Beef, Pork, Poultry, and Other. It offers fresh and processed beef, lamb, sheep, pork, and chicken. The company is also involved in leather business; and collagen, biodiesel fuel, hygiene and cleaning products, metal packaging, carriers, waste management, casings, and trading activities, as well as provides prepared food products.

Answer b)

History and Milestones:

2001–2010:

JBS became a publicly held company in 2007, and in the same year received a major investment from BNDES (Brazilian Development Bank).[6] In 2007 JBS went through with a US$225m acquisition of U.S. firm Swift & Company,[7] which was the third largest U.S. beef and pork processor, renamed as JBS USA. It leads the world in slaughter capacity, at 51.4 thousand head per day, and continues to focus on production operations, processing, and export plants, nationally and internationally. With the new acquisition, JBS entered the pork market, to end the year as the third largest producer and processor of this type of meat in the United States. The acquisition expanded the company's portfolio to include rights to the worldwide use of the Swift brand.

The next year, JBS acquired Smithfield Foods' beef business. It was renamed JBS Packerland. On September 16, 2009, JBS announced that it had acquired the food operation of Grupo Bertin, one of three Brazilian market leaders, consolidating its position as the largest beef producer in the world. The banks JP Morgan Chase and Santander Brasil assisted in the transaction. On the same day it was announced that the company had acquired 64% of Pilgrim's Pride for a bid of US$800 million, establishing JBS's position in the chicken production industry, but currently the company owns 75.3% of Pilgrim's Pride. In August 2010, it was reported that JBS was considering to sell some of the eight slaughterhouses it owned in Argentina because of "scarce livestock and export restrictions". Between 2007 and 2010, JBS received around $2.5 billion in investments from BNDES.

2011-2015:

As of 2011, JBS had been trying to bid to gain control of Sara Lee Corporation's meat business. JBS had shown interest in the meats business but struggled to push forward with a bid for the entire company.On May 27, 2014, Pilgrim's Pride Corporation, 75% owned by JBS S.A., made an unsolicited $5.6 billion bid for Hillshire Brands Co. (HSH). On July 28, 2014, Tyson Foods, Inc. announced its intention to sell Tyson de México and Tyson do Brasil, its Mexican and Brazilian poultry subsidiaries, to JBS S.A. for $575 million in cash by the end of 2014, pending regulatory approval. In 2015, JBS bought the US pork business of Cargill Inc. for $1.45 billion. Also in 2015, JBS S.A. created a board of compliance directors in Brazil. In December 2016, JBS announced a re-organization plan, which involved an initial public offering (IPO) in the United States for its international operations, through JBS Foods International. At the time, it had units on five continents.

2017:

According to industry estimates, as of 2017, JBS USA was the second-largest processor of beef and pork in the United States, while JBS-owned Pilgrim's was the second-largest poultry company.

Answer C and D are in the image uploaded.

Ownership Structure and Products and Services.