Brazilian meat processing company, Minerva Foods, has acquired cattle slaughtering and deboning plants from Marfrig for BRL 7.5 billion (approx. $1.53 billion).
The deal includes eleven plants and a distribution centre in Brazil, one “industrial unit” in Argentina and three plants in Uruguay. The company has also bought a lamb plant in Chile, which will contribute to “the protein diversification strategy” and operate “in niche markets with high added value,” said Minerva.
The deal will see Minerva advance its presence in the beef market, as the business is set to expand its cattle slaughtering and deboning capacity to 42,439 head per day from its current volume of 29,540 head, representing an increase of approximately 44%.
The transaction also brings additional advantages, such as logistical synergies, opportunities to expand and improve distribution and increased reach to international customers.
According to the company, the acquisition will result in Minerva becoming the second-largest beef processor in Brazil.
Fernando Queiroz, CEO of Minerva Foods, said: “We are very excited about this move, which is in line with our geographical diversification strategy and which uniquely complements our operation in South America, which is one of the most competitive markets in the world”.
He continued: “This will take our company to another level, give us access to new international clients, maximize commercial opportunities and operational synergies, reduce risks, and expand our ability to compete in the international animal protein market”.
Following the acquisition, Minerva will possess a total of 40 cattle slaughter and deboning facilities. These will comprise 21 units located in Brazil, five in Paraguay, six in Argentina, six in Uruguay and two in Colombia. Meanwhile, its lamb business will have five plants: four in Australia and the new facility in Chile.
The transaction is subject to analysis and approval by the relevant competition authorities.
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