World's Largest Meat Producer To Buy Moy Park For €1.32 Billion
JBS SA has agreed to buy poultry firm Moy Park, owned by Brazilian conglomerate Marfrig Global Foods SA, as the world’s biggest meat producer extends its push into processed foods. The transaction...
JBS SA has agreed to buy poultry firm Moy Park, owned by Brazilian conglomerate Marfrig Global Foods SA, as the world’s biggest meat producer extends its push into processed foods.
The transaction value includes €1.05 billion in cash and the assumption of around €280 million in debt at the unit, Moy Park Holdings Europe Ltd, according to a regulatory filing by São Paulo-based Marfrig.
The purchase of Moy Park helps JBS add to its presence in Europe and aids its growth in prepared foods, according to a statement. The company, also based in São Paulo, has spent about $7 billion since 2007 on acquisitions overseas including US-based Pilgrim’s Pride Corp. and Swift Co., and is generating record profits as a surging dollar pushes up revenue.
The sale ends a period of wait-and-see for Marfrig, a supplier of meat to McDonald’s Corp. and Burger King Worldwide Inc. Last year, the company planned to take Northern Ireland-based Moy Park public, with the proceeds from an offering slated to pay down debt.
Marfrig delayed the move last fall amid a surge in equity offerings in London. The company has also considered an IPO of another offshore unit, US-based Keystone Foods Ltd, in order to boost growth and reduce leverage.
Selling Moy Park will allow Marfrig to focus on expanding Keystone’s foodservice business in Asia and the US and emphasising beef exports from Brazil to those regions, according to the statement.
The deal is subject to approval by the European antitrust authorities, and is expected to close in the third or fourth quarter of this year, according to the filing.
For JBS, Moy Park continues its evolution into a global food empire after starting as a small Brazilian butcher. Recent takeovers, such as Seara Brasil from Marfrig and poultry assets from Tyson Foods Inc. in Brazil and Mexico, have boosted sales volume.
News by Bloomberg, edited by Checkout