Capital Calls: Meat giant JBS avoids plant-based indigestion

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Hong KONG, April 20 (Reuters Breakingviews) - Concise insights on global finance in the Covid-19 era.


PLANT THIS. Brazil’s JBS (JBSS3.SA) is making a healthy meal with its latest acquisition. The world’s largest meatpacker agreed on Monday to buy Netherlands-based Vivera read more for an enterprise value of $408 million. At 4 times annual sales, that shouldn’t stretch the acquiror’s waistline.

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In fact, it looks positively bite size. Beyond Meat, the poster child for the industry, trades at almost 19 times revenue for the past 12 months, per Refinitiv. Rival Impossible Meats could pack a similar premium multiple if it follows through on plans to sell shares to the public.

Investors certainly enjoy the taste. The almost 4% rise in JBS shares after the deal was announced added $585 million to the company’s market worth, a palate-pleasing 43% more than what it’s laying out for Vivera. That’s an effective way to pay a compliment to the chef, JBS boss Gilberto Tomazoni. (By Antony Currie)

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