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Pinnacle Asset Management buys Five Rivers Cattle Feeding

Pinnacle Asset Management LP said March 16 that it acquired Five Rivers Cattle Feeding for about $200 million. JBS USA was the seller. Five Rivers, of Greeley, Colorado, is a cattle feeding operation.


March 16, 2018 06:07 PM Eastern Daylight Time
GREELEY, Colo. & NEW YORK–(BUSINESS WIRE)–Pinnacle Asset Management, L.P., a leading commodities and natural resources investment firm, today announced it has successfully completed the acquisition of Five Rivers Cattle Feeding, a collection of cattle feeding assets and farms, from JBS USA for approximately $200 million. In conjunction with the transaction, Five Rivers entered into a long-term agreement to supply cattle to JBS USA beef processing plants.
Five Rivers Cattle Feeding is the largest cattle feeding operation in the world, with roots in the U.S. dating back to the 1920s, encompassing 11 feed yards across Arizona, Colorado, Idaho, Kansas, Oklahoma and Texas, and a feeding capacity of more than 900,000 head of cattle.
Five Rivers will continue to be led by its current management team, including CEO Mike Thoren, who will build upon Five Rivers’ strong track record of innovation, growth and stewardship.
Jason M. Kellman, Managing Partner and Chief Investment Officer of Pinnacle Asset Management, said, “We are pleased to have completed this transaction and believe Five Rivers has significant opportunities for growth. We look forward to working closely with Mike and his talented team to build upon Five River’s position as the leading cattle feeding operation in the world. Additionally, this transaction furthers Pinnacle’s mission to develop a diversified, global, physical commodity platform.”
Mr. Thoren added, “This is an exciting milestone in Five Rivers’ long history and a testament to the more than 600 skilled professionals who comprise the Five Rivers team. I am pleased to be partnering with Pinnacle, Arcadia, and Ospraie who share our vision for growth and our passion for providing high-quality fed cattle, including conventional, natural, certified humane and source-verified beef products, in a responsible and environmentally friendly way. We are grateful for JBS’ stewardship and are pleased to continue our relationship by remaining their leading supplier under a long-term agreement. The global demand for American beef remains robust and Five Rivers is well positioned to capitalize on the opportunities ahead.”
Jordan Levi, Managing Member of Arcadia Asset Management said, “I am looking forward to working closely with Pinnacle, Ospraie, Mike Thoren and the entire team at Five Rivers, who are among the most talented, innovative and dedicated executives in the industry. Five Rivers has bright future and on behalf of Arcadia, we are proud to be involved with this tremendous business.”
About Pinnacle Asset Management, L.P.
Founded in 2003, Pinnacle Asset Management, L.P. is a private, New York-based alternative asset management firm focused on the global commodities markets with approximately $2.3 billion under management. Pinnacle provides its institutional investor clientele with exposure to the global commodities markets via physical and financial absolute return funds, strategies and products. Pinnacle is registered with the Securities and Exchange Commission, is a commodity trading adviser and commodity pool operator registered with the Commodity Futures Trading Commission and a member of the National Futures Association.
About Arcadia Asset Management, LLC
Based in Oklahoma City and founded by Jordan Levi in 2009, Arcadia is a leading private cattle feeding operator. Jordan is a committee member for the National Cattlemen’s Beef Association and is a co-founder of the Fed Cattle Exchange. He served on the Board of Directors of the Texas Cattle Feeders Association.
About Ospraie Management
Ospraie is an investment management firm founded in 1999. Ospraie actively invests in basic industry and commodity markets on a global basis from a fundamentally driven, long-term perspective. The firm expresses its views by participation in the broader commodity and public equity markets, as well as private transactions.