December 27, 2013

Marfrig to lease new production units in Mato Grosso and Sao Paolo

Marfrig Alimentos has entered into an agreement for the lease of assets and other covenants from Brasil Foodservice Group S.A.- BFG, comprising a beef processing unit in Nova Xavantina, a city in south eastern Mato Grosso, as well as a distribution centre and a beef jerky production unit located in Itupeva, São Paulo.

The unit in Nova Xavantina has processing capacity of 1,200 head/day and will strengthen Marfrig Beef presence in Mato Grosso, the state with highest cattle herd in Brazil, representing approximately 14% of the total number of animals in the country. The Distribution Centre, which is located less than 60 kilometres from the São Paulo metropolitan area, will contribute to expand our operations in the food service and retail segments, both in the city of São Paulo and in the inland region of São Paulo state.

The implementation of the transaction is subject to certain suspensive conditions stipulated in the agreement, such as conducting the due diligence and obtaining the required corporate approvals. Marfrig will keep the market informed of any developments regarding this matter.