Jack Link's acquires Mankato snack meat manufacturerMINONG, Wis. – Jack Link’s Beef Jerky today announced that it has reached an agreement to acquire a packaged meat snack products manufacturing facility in Mankato, Minn.
MINONG, Wis. – Jack Link’s Beef Jerky today announced that it has reached an agreement to acquire a packaged meat snack products manufacturing facility in Mankato, Minn., from JBS S.A., the largest beef producer in the world.
The transaction is expected to close by the end of September, subject to customary closing conditions.
Terms of the deal were not disclosed.
The acquisition will enable Jack Link’s to increase production capacity in order to meet growing consumer demand for the Jack Link’s brand. The meat snacks category has grown 4.4 percent in 2010 year-to-date, and this agreement will help further position Jack Link’s for future growth.
“JBS’s Mankato plant is a perfect fit for our business with an experienced work force and management team,” said Jack Link, chief executive officer and chairman of the board of Jack Link’s Beef Jerky. “The addition of this plant gives us the opportunity to expand on our existing manufacturing operations and enhance our ability to meet our customers’ needs,” Link said.
The Mankato, Minn., facility, which employs 85 people, currently manufactures packaged meat snack products under the Pioneer snack brand and other private labels. Jack Link’s plans to retain current management and employees at the Minnesota plant.
In addition to the Mankato facility acquisition, Jack Link’s announced that it has entered into a joint venture with JBS, S.A., to operate two manufacturing facilities in the state of Sao Paulo, Brazil. The joint venture will help Jack Link’s ensure an adequate supply of product to meet growing demand and at provide the company with the necessary flexibility in its supply chain. With the acquisition and joint venture announcements, Jack Link’s Beef Jerky will increase from nine to 12 the number of manufacturing facilities worldwide from which it sources meat snack production.
Commenting on the joint venture, Link said, “This joint venture is highly complementary. It allows us to better leverage our strength in manufacturing and marketing meat snacks and JBS’s strength in beef production to benefit the marketplace.”
“We are forming an ideal partnership in bringing together the largest beef producer with the No. 1 meat snacks team to grow this business at a time when consumers are turning more and more toward healthy protein concentrated snacks,” Wesley Batista, president and CEO of JBS USA said. “With our competitive production skills and with Jack Link’s meat snack expertise and brand strength, this JV will enhance business for both of us and grow the market for this healthy product.”.