Minerva Foods, a leading food-processing company, has announced its plans to acquire cattle-slaughtering and deboning plants in South America. The acquisition will be made from Marfrig Global Foods, one of Brazil's largest food-processing companies. The deal, valued at 7.5 billion Brazilian reais ($1.54 billion), will significantly boost Minerva's presence in the region.
As part of the acquisition, Minerva will add 11 plants and one distribution center in Brazil to its portfolio. Additionally, an industrial unit in Argentina and three plants in Uruguay will be part of the deal. In line with its strategic objective of protein diversification and operating in niche markets with high added value, Minerva will also purchase a lamb plant in Chile.
Through this acquisition, Minerva will significantly increase its cattle-slaughtering and deboning capacity. The company's daily capacity will rise to 42,439 heads a day, compared to its current volume of 29,540 heads a day. This expansion is expected to contribute over BRL50.0 billion in net revenue to Minerva's net income.
Not only will this deal result in an expanded production capacity for Minerva Foods, but it will also strengthen the company's position in the domestic market. With this acquisition, Minerva will become the second-largest producer of beef in the region, further enhancing its competitiveness in a diversified market.
It is important to note that the completion of this transaction is subject to regulatory approval.
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