Marfrig, one of the largest producers of beef and beef products in Latin America, is to acquire the US food company OSI Group's businesses in Brazil and in a number of European countries.
The acquisition marks a growing trend for Brazilian firms to look for overseas and domestic assets to acquire, a trend only set to continue as forecasts suggest Brazilian meat exports are on the rise. Alcides Torres at Scot Consultoria, a Brazilian consultancy specialising in meat and milk predicts meat exports will increase to almost US$5bn this year, rising from US$4.3bn last year.
Businesses in Brazil set to be acquired by Marfrig are Braslo Produtos de Carnes, a key supplier for fast food chains, Penasul Alimentos, and Angrofrnago Industria e Comercio de Alimentos.
In Europe, Marfrig will acquire OSI's Moy Park Group based in the UK, with operations in Northern Ireland, England, France and the Netherlands.
The deal is initially valued at US$680mn in a combination of cash (US$400mn) and Marfrig common shares (US$280mn at market value following completion of the transaction) and the potential additional payment in the future of up to US$200mn linked to the future performance in the European businesses.
Last Updated June 26, 2008
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