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HM Capital to exit Swift in Latin American trade sale30/05/2007. Source: AltAssets. 
 HM Capital Partners is to sell their stake in food processing firm Swift & Company to J&F Participações of Brazil in an all-cash transaction representing an enterprise value of approximately $1.4bn.
Dallas-based private equity firm HM Capital Partners is to sell Swift & Company, which they say is the world’s third-largest processor of fresh beef and pork products, to J&F Participações, which owns 77 per cent of Brazil’s JBS, Latin America’s largest beef processor.
The transaction value includes $225m in cash for all Swift stock held by HM Capital and Booth Creek Management Corporation, its investment partner in the September 2002 acquisition of Swift from ConAgra Foods, and the assumption by J&F Participações of approximately $1.2bn in Swift debt plus all transaction-related expenses.
Edward Herring, a Partner of HM Capital, commented, 'This is a win-win transaction for everyone involved. For HM Capital, the proceeds from this transaction, coupled with our earlier leveraged recapitalization of Swift, will together produce a very attractive return for our investors. For J&F, the strategic combination of Swift and JBS — industry leaders with no market overlap — will create the world’s leading beef processor. The transaction also will benefit Swift’s customers, employees and business partners, by creating a combined Swift-JBS enterprise in which Swift will retain its organizational identity, customer and supplier relationships and substantially all of its employees and leadership team while becoming part of the world’s largest beef processor.'
Completion of the transaction is subject to Hart-Scott-Rodino and other antitrust reviews and customary closing conditions, and is expected by the firm to occur in mid-July 2007.
HM Capital, in partnership with Booth Creek Management Corporation, of Vail, Colorado, acquired Swift & Company — then known as ConAgra Meats Company — from ConAgra Foods in September 2002. The original Swift & Company was founded in 1855.
HM Capital is currently managing $3.7bn in equity capital.
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