April 10, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

King Ranch was founded over 170 years ago in Kingsville, Texas, by Captain Richard King. Today, the historic 825,000-acre King Ranch is not only a founding figure in American ranching still owned by the founder’s descendants with operations in Texas, Oklahoma, Florida, and California, but has diversified into other segments including real estate and natural resource management.

Now, the diversification continues with the announcement of a strategic investment into Cobalt Cattle, the fourth-largest cattle feeding operation in the U.S. with six feedyards in Colorado, Kansas, and Texas. 

King Ranch explained that this deal is its next step in its long-term vision to expand throughout the various segments of the beef industry to have a presence in the entire value chain. 

“We are excited about this opportunity and what it means for King Ranch’s long-term commitment to the beef industry,” said Robert Hodgen, CEO of King Ranch, Inc. “Cobalt Cattle is a clear leader in the cattle feeding sector with a highly seasoned and experienced management team. We look forward to leveraging our combined industry expertise while upholding our shared commitment to the highest standards of excellence.”

Cobalt Cattle wasn’t always known by that name. Back in 2019, a joint venture between AGR Partners, TGAM Agribusiness Fund Holdings, and StepStone Group acquired a 50 percent stake in what was known at the time as Green Plains Cattle Co. for $77 million. The following year, the company sold its remaining 50 percent stake to the investor group including AGR Partners and StepStone Group for $80 million. 

“We are excited to increase our ownership in Green Plains Cattle Company,” said Daniel Masters, managing director, AGR Partners at the time. “GPCC and the management team have a proven operational model delivering strong long-term economic, environmental and social outcomes.”

Then in November 2021, Green Plains announced it was changing its name to Cobalt Cattle Company, explaining that the change was the final step toward functioning as a stand-alone cattle feeding and growing business. 

Now the company has agreed to once again sell a 50 percent stake in the business to King Ranch – a long-standing pioneer in the U.S. cattle business, having participated in some of the country’s first cattle drives, and helping to found key industry associations such as the Texas and Southwest Cattle Raisers Association. 

King Ranch also was the developer of the Santa Gertrudis breed of cattle, which went on to cross breed with Red Angus over the course of three decades resulting in cattle that are uniquely suited to thrive in Texas’ harsh climate. 

“We are proud to partner with King Ranch,” says Ejnar Knudsen, CEO, AGR Partners. “We are looking forward to continued success in the Cobalt Cattle business alongside an industry leader with a complementary strategic vision.”

Joel Jarnagin, president and CEO, Cobalt Cattle, added, “Cobalt Cattle looks forward to partnering with King Ranch and achieving the long-term benefits of working together while building an enduring legacy in the cattle industry. King Ranch is well known and their desire to partner with Cobalt Cattle is a testament to the discipline and operational excellence the Cobalt Cattle team brings each day.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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