Sector News

Brazil’s JBS to pay $1.5 billion for Marfrig’s Moy Park

June 22, 2015
Food & Drink
(Reuters) – Brazil’s JBS SA, the world’s largest meat packer, has agreed to pay about $1.5 billion (£944.7 million) for Moy Park Ltd, the British unit of rival Marfrig Global Foods SA, JBS and Marfrig announced on Sunday.JBS, which has undertaken a massive overseas expansion since 2007, will pay $1.19 billion in cash and will assume Moy Park’s debt totalling 200 million pounds as part of the deal, Marfrig said in a statement.
 
The deal requires approval by European antitrust regulators. The companies expect to conclude the transaction by end-2015.
 
Moy Park, the largest producer of poultry in the United Kingdom, will give JBS access to affluent markets in Britain, Scandinavia and other European countries where consumption of processed food is growing. Moy Park accounts for 26 percent of Marfrig’s revenues and commercializes products from celebrity chef Jamie Oliver.
 
“This transaction represents an important step in JBS’ strategy to grow its portfolio of prepared and convenient products with high value added portfolio,” JBS’ investor relations officer Jeremiah O’Callaghan said in a statement.The deal will also help Marfrig reduce its debt, currently at about $5 billion. The company said in the statement that it will focus increasing beef exports from Brazil to Asia and the United States, boosting free cash flow generation and expanding its food service business through its Keystone subsidiary.Moy Park is not the first deal between JBS and Marfrig: a couple of years ago, JBS agreed to buy processed food maker Seara from Marfrig, a move that allowed JBS to significantly increase its market share in Brazil.
 
(Reporting by Guillermo Parra-Bernal and Roberto Samora; Writing by Silvio Cascione; Editing by Eric Walsh and Nick Zieminski)

comments closed

Related News

September 25, 2022

Coca-Cola names new president of global ventures

Food & Drink

The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.

September 25, 2022

Perfect Day allies with Onego Bio to speed-up launch of animal-free eggs

Food & Drink

US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.

September 25, 2022

EU fails on food waste: Report reveals bloc discards more than it imports

Food & Drink

Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.