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Leucadia National Corp Takes Control of National Beef

06 December 2011

US - Leucadia National Corporation has entered into a membership interest purchase agreement with National Beef Packing Company, and its members, to acquire 78.95 per cent of National Beef for $867.9 million.

The payment will be made from Leucadia’s available cash and investments.

National Beef is one of the largest beef processing companies in the Unites States.

National Beef processes, packages and delivers fresh and frozen beef and beef by-products for sale to customers in the US and international markets.

National Beef’s products include boxed beef, ground beef, hides, tallow and other beef and beef by-products.

National Beef also sells value-added beef products including branded boxed beef, case-ready beef, portion control beef and further processed hides. National Beef markets its products to retailers, food service providers, distributors, further processors and the US military.

The current owners of National Beef, US Premium Beef, LLC, NBPCo Holdings, LLC and Timothy Klein, National Beef’s Chief Executive Officer, will continue as minority owners of National Beef following the deal.

The completion of the deal is subject to certain customary closing conditions, including, among other things, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and approval by the members of USPB.

The board of directors of USPB has approved the purchase agreement and has agreed to recommend that USPB’s members approve the transaction.

Leucadia expects to complete the transactions by the end of 2011 and anticipates that following consummation of the transaction, National Beef will continue to operate in the same manner and with the same management as is currently in place.

Leucadia also announced that its Board of Directors has declared a cash dividend equal to $0.25 per Leucadia’s common share payable on 30 December to record holders of Leucadia common shares on 16 December.



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