JBS to buy Marfrig Global Foods’ UK operations for $1.5bn

Brazil-based meat packager JBS will be acquiring the UK unit of Marfrig Global Foods, Moy Park Holdings Europe, for an estimated $1.5bn.

Marfrig said in a statement that as part of the deal, JBS will pay $1.19bn in cash and will assume Moy Park’s debt, amounting to £200m.

Based in Sao Paolo, JBS has invested around $7bn on overseas acquisitions since 2007 that include the US-based Pilgrim’s Pride and Swift.

JBS’ investor relations officer Jeremiah O’Callaghan said: “This transaction represents an important step in JBS’ strategy to grow its portfolio of prepared and convenient products with high value added portfolio.”

The deal that is expected to be concluded by the end of the year will require approval from European antitrust regulators.

With the acquisition of Moy Park, which is considered to be the largest producer of poultry in the UK, JBS will be able to access affluent markets in Britain, Scandinavia and other European countries.

The UK unit represents 26% of Marfrig’s revenues and commercialises products from celebrity chef Jamie Oliver.

The transaction will also help Marfrig reduce its debt, which amounts to $5bn currently and will help it focus on increasing beef exports from Brazil to Asia and the US.

Marfrig, that supplies meat to food chains including McDonald’s and Burger King Worldwide, had been considering the divestment of Moy Park since last year. However, the company had to postpone the move to increase equity offerings in London, reported Bloomberg.

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Image: Marfrig that supplies meat to food chains including McDonald’s and Burger King Worldwide. Photo: courtesy of amenic181/freedigitalphotos.net.