Aquisition: Marfrig buys Argentinean Quickfoo...

Marfrig buys Argentinean Quickfood for $55 mill.

With this transaction, Marfrig strengthens its position in the high value-added product market.
With this transaction, Marfrig strengthens its position in the high value-added product market.

BRAZIL, São Paulo. Marfrig Global Foods, one of the world's leading producers in the beef industry, has informed the Securities and Exchange Commission of Brazil (CVM) of the acquisition – for $ 54,9 mill. – of 91.89% of the capital stock of Quickfood in Argentina. Leader in the beef by-products market and owner of prominent brands in Argentina, Quickfood was under the control of BRF for the last seven years.

Quickfood has three plants in Argentina, in the cities of San Jorge, Baradero and Arroyo Seco. Together, these units have a daily processing capacity of 620 head of cattle and, in a month, process more than 6,000 t of products such as beef patties, wieners, cold cuts and frozen vegetables.

Among the company’s brands are Paty, synonymous with beef patties in Argentina, Good Mark and Barfy, other beef patties brands, Vienissima!, the leading brand of wieners, and Green Life, the frozen vegetables brand. In 2017, Quickfood’s net sales amounted to $ 352 mill.

On the same occasion, Marfrig also announced a partnership with BRF, worth R$100 mill., by which it will take over the production of beef patties, meatballs and kibbeh at the plant in Várzea Grande, Mato Grosso– and the transfer of equipment and infrastructure. The unit has annual production capacity of 69,000 t of beef patties.

The partnership guarantees Marfrig an agreement for supplying these products to BRF for five year. Apart from the partnership with BRF, the agreement allows Marfrig to once again supply products, such as beef patties, to global foodservice companies in Brazil and to adjust the estimated investment to a new beef patties plant in the country.

Both operations will be managed by Miguel Gularte, CEO of Marfrig’s South-American operation, and will be financed with part of the company’s cash.

Source: Marfrig


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