Business news in brief

State pork units part of $1.45B JBS sale

JBS USA Pork has agreed to purchase Cargill's U.S.-based pork business for $1.45 billion, an acquisition that includes a feed mill and two hog farms in Arkansas.

Martin Dooley, president and chief operating officer of JBS USA Pork, called the acquisition a "strategic investment in the long-term growth" of the company's global pork business.

"This transaction will strengthen our position as a producer and supplier of all major animal proteins around the world, and provide increased opportunities for our producer partners and key customers," Dooley said in a statement.

The purchase includes two Midwest meat-processing plants, acquired by Cargill in 1987 and 2014, that process 9.3 million hogs. Five feed mills and four hog farms -- including the Arkansas locations -- are part of the agreement, which remains subject to regulatory review and approval.

A JBS USA spokesman said in an email that the Arkansas feed mill is located in London, while the hog farms are in Morrilton and Umpire. The spokesman declined further comment on the acquisition.

A Cargill spokesman said the three locations, along with the company's business and administrative offices in Russellville, employ about 130 people.

JBS USA is an indirect, wholly owned subsidiary of Brazilian-based JBS SA, which also is the majority owner of Pilgrim's Pride. Springdale-based Tyson Foods Inc. agreed to sell its poultry operations in Mexico and Brazil to JBS SA for $575 million last year.

-- Robbie Neiswanger

NYC advocate: Divest Wal-Mart shares

New York City Public Advocate Letitia James has urged the city's pension systems to divest of its holdings in Wal-Mart Stores Inc. and other retailers because they sell guns and ammunition.

James, in a letter Tuesday addressed to "Members of the Boards of Trustees of the New York City Pension Systems," writes "as a City and as trustees to our pension funds, we still profit from this violence, while exposing us to risk and uncertainty in our holdings." James, a trustee to the $54.5 billion New York City Employees' Retirement System, plans to introduce a resolution that calls for a review of Wal-Mart holdings and the development of a plan to divest.

James said the city has in excess of 5 million shares. The stock is valued at $354.6 million.

New York City pension funds also own stock in Big 5 Sporting Goods Corp., Cabela's and Dick's Sporting Goods Inc.

"As fiduciaries, divesting from any security is never a first step," James wrote in a letter citing the recent church shooting in Charleston, S.C., and other mass shootings. "Engagement of a corporation by shareholders is always preferable. However, for many years Wal-Mart has been one of the most problematic and hostile firms for shareholders to engage."

Wal-Mart did not immediately respond to a request for comment. It sells guns in roughly half of its 4,500 stores, and Alaska is the only state in which handguns can be purchased at Wal-Mart.

-- Chris Bahn

Pace merges with Michigan company

Fayetteville-based Pace Industries has merged its die-casting business with the Port City Group in Muskegon, Mich. Port City Group will become a division of Pace.

The combined business will provide die-casting, machining, manufacturing and finishing services across many industries including automotive, lighting, electrical and recreational.

The combined company will have more than 4,000 employees working in 12 divisions at 21 facilities in the United States and Mexico.

Scott Bull is president and CEO of Pace Industries. John Essex will remain CEO of Port City Group and will join the Pace board of directors and become one of the company's largest shareholders.

-- Christie Swanson

Destination Downtown event set for LR

Destination Downtown 2015, a regional conference for anyone interested in preservation-based commercial-district revitalization in Arkansas, will be held Sept. 14-16 at Central Arkansas Library System's Ron Robinson Theater in Little Rock. The event is hosted by Main Street Arkansas, the Mississippi Main Street Association and the Louisiana Main Street program, Greg Phillips, director of Main Street Arkansas, said in a release.

Main Street Arkansas is a program of the Arkansas Historic Preservation Program. The Main Street approach to downtown revitalization focuses on four areas: design, economic restructuring, organization and promotion.

The convention targets Main Street directors, board members and volunteers, as well as architects, planners, economic development professionals, public officials and consultants. Registration is $100 until Sept. 1 and $150 after that date. Registration and information can be found at www.mainstreetarkansas.com/Events-and-News/destination-downtown.

-- Cyd King

Mortgage giants' CEOs get hefty raises

NEW YORK -- The chief executives of government-backed mortgage giants Fannie Mae and Freddie Mac are getting large raises, to about $4 million a year, as the government relaxes rules that were imposed on the companies after they suffered big losses and were bailed out.

In forms filed with the Securities and Exchange Commission on Wednesday, the companies disclosed that Federal National Mortgage Association Chief Executive Officer Timothy Mayopoulos and Federal Home Loan Mortgage Corp. CEO Donald Layton will get annual base salaries of $750,000 each, $2.1 million in fixed deferred compensation and $1.2 million in at-risk deferred salary. It does not include bonuses. Their pay had been capped at $600,000 a year.

The Federal Housing Finance Agency, which oversees the companies, said the new plans take CEO performance into account and defer compensation so that the executives stay with the companies. It said Mayopoulos and Layton will be paid less than most CEOs at similar companies.

Sen. Richard Shelby, the Alabama Republican who heads the Senate Banking Committee, called the agency's approval of the raises "inappropriate and irresponsible."

-- The Associated Press

Business on 07/02/2015

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