Marfrig Frigoríficos e Comércio de alimentos S.A. informs in a press release that it has formalised a firm commitment to acquire OSI Group’s businesses in Brazil and in several European countries. The acquisation includs 15 manufacturing facilities for further processed and industrialized products and poultry slaughtering, with annual revenues amounting US$ 2 billion.
In Europe, Marfrig will acquire OSI’s Moy Park Group based in the United Kingdom (fourth largest company in Northern Ireland) with manufacturing facilities in Northern Ireland, England, France and the Netherlands. It is the largest vertically integrated poultry processor and supplier of further processed and value-added chicken products in the United Kingdom and also has further processing manufacturing facilities in France.
The deal is valued initially at US$680 million in a combination of cash (US$ 400 mm) and Marfrig common shares (US$ 280 million at market value following completion of the transaction) and with a potential additional payment in the future of up to US$220 million linked to future performance in the European businesses.
It is expected that the transaction will be concluded in the second half of 2008, after its submission to the regulatory bodies of the aforementioned countries and its ratification by the General Shareholders’ Meeting of Marfrig.
These investments reinforce the Marfrig’s strategy of having direct access to international markets, diversifying and expanding its activities in several animal proteins, while increasing its production of processed, industrialized and value-added products and strengthening its brands in the global market, with its South-American based production platform reaching customers worldwide.
Source: Marfrig Frigoríficos e Comércio de Alimentos S.A.