BRF divests stake in SATS BRF Food JV in Singapore

Brazilian food conglomerate BRF has signed an agreement with SATS Food Services to sell its remaining 49% stake in SATS BRF Food (SBRF) joint venture (JV) in Singapore.

BRF divested its stake in SBRF for a consideration of S$17m ($12.2m).

SATS BRF Food is engaged in food processing and distribution activities in Singapore. The deal is said to be in line with the company’s objective to feed and connect to the Asian market.

SATS president and CEO Alex Hungate said: “By taking 100% ownership of our food distribution joint venture company we can accelerate end-to-end traceability of raw materials for our customers, and deploy data analytics to achieve greater efficiency and quality while reducing food waste.”

Upon completion of the deal, SBRF will become a wholly owned subsidiary of SATS Food Services and will be renamed Country Foods.

Country Foods has also signed a contract for the distribution and licensing of brands owned by BRF in Singapore.

BRF noted that the divestiture is in line with the company’s financial and operational restructuring plan, which was announced in June last year.

As per the plan, the company intends to focus on its core markets, including Brazil, Halal and Asian markets.

Additionally, the company aims to fast-track its financial deleveraging process.

In June, Tyson Foods completed the acquisition of BRF’s Thai and European businesses for $340m.

The deal involved the acquisition of four production facilities in Thailand, as well as one each in the Netherlands and the UK.