JBS to acquire BRF Brasil Foods’ Brazilian pork assets

Brazilian meat producer JBS has entered into an agreement to acquire the Unidade Industrial Ana Rech poultry farm and hog processing facility and 491,000 hogs from BRF Brasil Foods, in a deal worth BRL200m ($100m).

Under the terms of the deal, JBS will pay BRL80m ($39.8m) for the hogs and BRL120m ($59.7m) for the Unidade Industrial Ana Rech processing facility in the Rio Grande do Sul state of Brazil.

The industrial unit has processing capacity of approximately 3,500 hogs per day, according to BRF Brasil Foods.

As part of the agreement, JBS will pay the acquisition amount in fifty monthly and consecutive installments, with each installment totalling BRL$4m ($1.99m).

The transaction is subject to certain suspensive conditions and authorisation of the Brazilian anti-trust regulator CADE.

BRF Brasil Foods is a Brazilian food company formed from the merger of food producers Perdigão and Sadia in 2009.

The company has presence in more than 110 countries and operates 60 industrial plants in Brazil and four across the world, as well as 36 distribution centres and 24 global offices.

Its brands in Brazil include Perdigão, Sadia, Batavo, Rezende, Wilson, Doriana, Claybon and Qualy.

JBS, based in São Paulo, produces fresh, chilled and processed beef, chicken and pork and also sells by-products from the processing of these meats.

In April, JBS received approval from CADE for the purchase of Bertin, which operates about 38 meat processing facilities in Brazil and across the world.

In February this year, JBS completed the acquisition of local beef processor Independencia for BRL268m ($142.8m).