Brasil Foods buys two Argentine food companies

Brazilian food company Brasil Foods (BRF) has acquired corporate control of Argentinean Danica, after buying a share in Argentina’s leading poultry producer and exporter Avex.

The total investments for both acquisitions will amount to approximately $150m, with two thirds of ownership by BRF and one third by other local shareholders, the company said.

The transaction will be supported with BRF’s own financial resources.

According to the company, the acquisitions are aimed at strengthening BRF’s brands in the Mercosur region in South America, via the expansion of its product portfolio, access to local markets and export platform.

Danica, headquartered in Buenos Aires, has a broad distribution structure for dry and chilled / frozen products, and is a leader in the margarines and sauces segment, reporting revenues of $122.7m in 2011.

Avex, located in Rio Cuarto, Cordoba, is the leading player in the domestic poultry market, with a market share of 4% in Argentina, and it reported sales of $66.8m in 2010.