Marfrig has secured a deal to buy BRF’s Argentinean subsidiary Quickfood for $55 million as aims to grow its value-added product offer.
The Brazilian companies also announced that Marfrig will take over the production at BRF’s plant in Várzea Grande, Brazil, to produce beef patties and meatballs.
Quickfood, which has been owned by BRF for the last seven years, has three plants in Argentina, in the cities of San Jorge, Baradero and Arroyo Seco. Together, these units have a daily processing capacity of 620 head of cattle and, in a month, process more than 6,000 tons of products such as beef patties, cold cuts and frozen vegetables.
Its brands include Paty, Good Mark, Barfy, Vienissima! and Green Life. In 2017, Quickfood’s net sales were $352 million.
Marfrig CEO Eduardo Miron said: “With this acquisition, we are reinforcing one of our strategic pillars: focus on growth in value-added products and brands. And we are doing this by acquiring a company renowned for operational excellence. We believe that this operation will create value for our stakeholders.”
The Várzea Grande deal, which is worth BRL 100 million ($25.6 million), will see Marfrig supply products to BRF for five years.
Apart from the partnership with BRF, the agreement allows Marfrig to once again supply products, such as beef patties, to foodservice companies in Brazil.
Both operations, Quickfood and Várzea Grande, will be managed by Miguel Gularte, CEO of Marfrig’s South American operation. “We have a non-negotiable commitment to financial health,” he said. “With the acquisition of these companies, we saw an opportunity to grow, maintaining and focusing on a simple structure, without losing sight of this commitment.”
Speaking of the Várzea Grande agreement, BRF COO Lorival Luz said: “With this deal, we take an important step forward in BRF’s deleveraging process, in line with our previously announced divestment plan. The partnership with Marfrig will yield benefits for the operations and profitability of both companies and ensure the production of high-quality products for our consumers.”
Source: FoodBev
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