March 5, 2012

Marfrig to integrate Keystone as part of restructuring

Marfrig Alimentos S.A. have approved a fresh restructuring this month, aimed at improving efficiencies and streamlining operations.

The new structure will group the company's poultry, pork and processed products businesses and integrate the beef, lamb and leather operations in Brazil, Argentina and Uruguay, according to Marfrig. Seara Foods will include Seara Brazil, Moy Park and Keystone Foods, Marfrig said. The three companies will operate as three separate entities with their own brands. Marfrig Beef will integrate export operations and individually serve domestic markets in each of the three countries.

The company hopes to create value for its customers through revenue, cost, capital and tax synergies. Seara Foods has the potential to generate BRL230-330 million (US$132 million-190 million) within five years, according to Marfrig.