Brazilian meat packing company JBS has agreed to acquire British poultry producer Moy Park from Marfrig Global Foods in a deal worth approximately $1.5bn.
As part of the transaction price, JBS will pay $1.19bn in cash and assume Moy Park’s £200m’s worth of the Northern Ireland-based company’s debt. Moy Park’s overall debt totals $5bn, which the poultry producer’s new owner will be seeking to reduce. Subject to regulatory approval, the acquisition could be completed by the end of the year.
The acquisition will allow JBS to enhance its access to markets in Britain, Scandinavia and other parts of Europe, where consumption of processed food is rising. Most of Moy Park’s sales come from fresh produce, but processed meat accounts for 40% of its sales.
JBS investor relations officer Jeremiah O’Callaghan said: “This transaction represents an important step in JBS’ strategy to grow its portfolio of prepared and convenient products with high value added portfolio.”
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