January 20, 2011

Minerva signs to buy Uruguay's Pul for US$65 million

Minerva, one of Brazil's market leaders in the production and sale of fresh beef and live cattle, has settled to acquire Uruguayan meatpacker Pul for almost US$65 million, the company informed Tuesday (Jan 18).

The amount includes modernisation and expansion investments, Minerva said. Part of the payment (about US$14 million) should be done through the issuance and transfer of 2.704 million new Minerva shares at a price of BRL$ 8.75 (US$5.23) each.

The acquisition is still subject to several conditions, including conducting due diligence in 90 days and the negotiation of definitive agreements, Minerva said.

After investments in Pul are completed, its slaughter capacity will reach 1,400 head a day. Pul is among the three largest meatpackers in Uruguay, with net revenues projected at US$125 million to US$145 million in 2011.

According to USDA, Uruguay is currently the 15th largest beef producer worldwide and the 7th largest beef exporter in the world, exporting to over 40 markets, including some that Brazil does not reach, such as the US and Canada.