May 13, 2013
JBS to buy BRF Brasil Foods' pork assets
In a deal worth BRL200 million (US$100 million), JBS has agreed to acquire Unidade Industrial Ana Rech hog processing facility, 491,000 hogs and poultry farm assets from BRF Brasil Foods.
Under the terms of the deal, JBS will pay BRL80 million (US$39.8 million) for the hogs and BRL120 million (US$59.7 million) for the Unidade Industrial Ana Rech processing facility, poultry farm assets of BRF in the Rio Grande do Sul state of Brazil. The industrial unit has processing capacity of approximately 3,500 hogs per day, according to BRF Brasil Foods.
As part of the agreement, JBS will pay the acquisition amount in fifty monthly and consecutive instalments, with instalment amounting to BRL$4 million (US$1.99 million). The transaction is subject to certain suspensive conditions and authorisation of the Brazilian anti-trust regulator CADE.
BRF Brasil Foods is a Brazilian food company formed from the merger of food producers Perdigão and Sadia in 2009. The company has presence in more than 110 countries and operates 60 industrial plants in Brazil and four across the world, as well as 36 distribution centres and 24 global offices.
JBS, based in São Paulo, produces fresh, chilled and processed beef, chicken and pork and also sells by-products from the processing of these meats.
