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Minerva Foods Plans $1.54 Billion Acquisition in South America

Minerva Foods plans to acquire cattle-slaughtering and deboning plants in South America from one of Brazil’s largest food-processing companies, Marfrig Global Foods, for 7.5 billion Brazilian reais ($1.54 billion).

The assets to be acquired comprise 11 plants and one distribution center in Brazil, an industrial unit in Argentina, and another three plants in Uruguay, Minerva said in a statement late Monday.

The deal also involves the purchase of one lamb plant in Chile, in line with the company’s strategy of protein diversification and operating in niche markets with high added value.

With this deal, Minerva will expand its cattle-slaughtering and deboning capacity to 42,439 heads a day, compared to its current volume of 29,540 heads a day, it said. Minerva expects the assets to add over BRL50.0 billion in net revenue to its net income.

“The deal also strengthens Minerva Foods’ position in the domestic market, with the company becoming the second-largest producer of beef in the region, in a diversified and very competitive market,” it said.

The transaction is subject to regulatory approval.

Source : Market Watch