June 24, 2009
Brazil's Marfrig to buy Doux Frangosul division
Brazilian meat company Marfrig Alimentos SA (MRFG3.BR) said Tuesday (June 23) it will acquire a poultry division of Doux Frangosul for 65 million reals (US$32 million).
Marfrig said the deal was part of a strategy to diversify away from being mainly a beef producer. The company also operates in the chicken segment and is one of Brazil's leading meat exporters.
The total value of the deal could change after the due diligence process is concluded.
Marfrig is acquiring the turkey meat unit of Frangosul, located in the southern Brazil state of Rio Grande do Sul. The unit has the capacity to slaughter 30,000 turkeys daily.
Doux Frangosul is the Brazilian subsidiary of French poultry giant Groupe Douxe.
