September 20, 2011

Brazil's Marfrig to sell its logistics unit

Brazil's Marfrig Alimentos SA has agreed to sell to Martin-Brower Co., the logistics unit of its Keystone Foods LLC subsidiary, for US$400 million.

Marfrig said in a statement on Sunday that the deal is subject to certain approvals and should be concluded in the fourth quarter.

The Keystone logistics unit provides services in the US, Europe, the Middle East, Oceania and Asia, Marfrig said.

Marfrig bought Keystone Foods late last year in a deal worth about US$1.26 billion.

Keystone Foods was the largest privately held meat products company in the US, serving more than 28,000 restaurants, including hamburger patties and chicken products to McDonald's Corp.'s (MCD) fast-food restaurants across North America, EU and Asia.

Keystone Foods and Marfrig will maintain their recently announced partnership for logistics in China, called COFCO.