Agrifood company Bunge has entered into an agreement to sell its margarine and mayonnaise assets in Brazil to Seara Alimentos, a subsidiary of Brazilian meat processor JBS, for 700 million reals ($170.64 million).
JBS-owned Seara Alimentos specialises in the development and distribution of meat products, in particular poultry processing.
The deal includes three production plants in Gaspar, São Paulo and Suape, as well as several brands used for these two products, such as Delícia, Primor and Gradina.
Bunge will remain the owner of its other branded products including packaged oils, shortenings and speciality oils.
Under the terms of the transaction, the companies have also negotiated supply, toll manufacturing and brand license agreements.
“This transaction further streamlines our operations in Brazil around our core capabilities, while providing good value for a solid business,” said Greg Heckman, Bunge’s CEO.
Heckman added: “It also represents another incremental step in executing a key priority of optimising our overall portfolio.”
In its statement, JBS said that the acquisition will strengthen Seara’s position in the Brazilian margarine segment by optimising its distribution platform and is aligned with its strategy to expand its portfolio of value-added and branded products.
Earlier in the year, Bunge formed a joint venture with oil company BP to create a bioenergy company in Brazil, in a deal in which it received $775 million.
Completion of the sale is subject to regulatory approval.
© FoodBev Media Ltd 2019