Marfrig taps ‘opportunity for growth’ in double BRF deal
Subject to approval, the US$60m Quickfood acquisition means Marfrig is set to take control of 91.89% capital stock of the business in Argentina, including its three plants in San Jorge, Baradero and Arroyo Seco.
Collectively, the plants have a daily processing capacity of 620 head of cattle and process more than 6,000 tons of products - such as beef patties, wieners and cold cuts - a month.
Marfrig also agreed an additional deal with BRF to take over production of beef patties, meatballs and kibbeh at its Brazilian plants in Varzea Grande and Mato Grosso for the next five years, in a deal worth R$100m.
The beef products will continue to be distributed and sold under BRF’s brands, including Paty, Good Mark and Barfy.
The move is part of Marfrig’s “opportunity for growth” plan, as well as to enhance its position in the high value-added product market.
Marfrig’s global CEO Eduardo Miron said: “We have a non-negotiable commitment to financial health. 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.”
BRF’s chief operating officer Lorival Luz said the deal marked an important step as part of the company’s restructuring plan.
“With this deal, we take an important step forward in BRF’s deleveraging process, in line with our previously announced divestment plan,” said Luz. “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.”
