Brazilian-based Mafrig Group has agreed to sell 16 processing plants throughout South America to Minerva Foods for $1.54 billion.
The acquisition will increase Minerva’s slaughtering and deboning capacity by 44% to 42,439 head a day. According to Minerva, the sale involves 11 plants and a distribution center in Brazil, one beef plant in Argentina, three plants in Uruguay and one lamb unit in Chile.
A spokesperson for Mafrig told Reuters the sale involves 40% of the company’s sales in South America. They said it would enable the company to focus on higher-value branded processed meat products and premium fresh cuts in the continent.
“We are very excited about this move, which is in line with our geographical diversification strategy and which uniquely complements our operation in South America, which is one of the most competitive markets in the world,” Fernando Queiroz, CEO of Minerva Foods, said in a statement.
