Kansas Ag Connection - Pinnacle Asset Management Acquires Five Rivers Cattle Feeding

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Pinnacle Asset Management Acquires Five Rivers Cattle Feeding
Kansas Ag Connection - 03/20/2018

Pinnacle Asset Management, L.P., a leading commodities and natural resources investment firm, 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."

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."

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.

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