BRF to acquire majority stake in Alyasra

Brazilian food company BRF has signed a binding offer to acquire a 75% stake in the retail frozen foods distribution business of Kuwait-based Alyasra Food Company.

The acquisition, which is based on a total enterprise value of $160m, will be made as per the local laws and regulations of Kuwait.

The deal is expected to leverage Alyasra’s logistics infrastructure and BRF’s supply chain efficiencies, strong brands and product development expertise to serve and grow in the local market.

Alyasra is the current distributor for BRF in Kuwait, where the company covers sectors such as retail and food services, with a presence in the frozen, chilled and dry segments.

Alyasra has been distributing BRF’s products for 20 years, in addition to products from other brands and suppliers.

The firms have agreed that in the food services channel, where Alyasra will continue to operate independently, BRF will become the exclusive supplier to Alyasra for the products of its portfolio.

BRF noted that the transaction is in line with the company’s strategic plan for internationalising the firm, accessing local markets, strengthening its brands and distribution, and expanding its product portfolio in the Middle East.

BRF, which owns the Perdigão, Sadia, Batavo and Elegê brands, is an exporter of poultry meats and a principal dairy processor in Brazil.

The company exports products to around 120 countries. Its portfolio includes 3,000 products, comprising meat, milk, margarine, pasta, frozen entrees and frozen vegetables.