BRAZIL – Beef industry giant, Minerva Foods has struck a deal to acquire cattle slaughtering and deboning plants from its Brazilian counterpart Marfrig solidified its standing in the beef industry.
The transaction, valued at US$1.53 billion, encompasses assets across multiple South American countries, bolstering Minerva’s dominance in the region’s meat-processing landscape.
The deal, sending ripples through the agricultural and food processing included acquiring prime assets situated in Argentina, Brazil, Chile, and Uruguay.
Expressing his enthusiasm for the acquisition, Fernando Queiroz, the CEO of Minerva Foods, emphasized that this move would propel the company to new heights within the industry.
“This will take our company to another level, give us access to new international clients, maximize commercial opportunities and operational synergies, reduce risks, and expand our ability to compete in the international animal protein market,” he said.
Marfrig’s CFO, Tang David, assured stakeholders that despite this significant divestiture, the company’s focus on value-added products and high-performance production processes will remain unwavering.
He expressed confidence in Marfrig’s commitment to maintaining a strong presence in the beef sector through its other ventures, including Pampeano, a canned-food manufacturer, and a beef patties facility in Bataguassu.
The acquisition is set to substantially enhance Minerva’s capabilities, with its cattle slaughtering and deboning capacity poised to increase by an impressive 44%.
The expanded production capacity will enable Minerva to process up to 42,439 head of cattle per day, solidifying its status as a leading force in the meat-processing arena.
Detailed due diligence on the transaction has indicated that the net revenue generated by these new assets will propel Minerva’s annual net revenue beyond 50 billion reais.
This achievement is notable given that the company’s net revenue for the year 2022 already reached a record-breaking 31 billion reais.
The acquisition is not just a financial boon but also aligns seamlessly with Minerva’s strategic geographic diversification plan. As Queiroz highlighted, this move uniquely complements the company’s existing operations in South America.
Post-acquisition, Minerva will significantly expand its global footprint in the meat industry. The company will boast a remarkable tally of 40 beef cattle slaughter and deboning plants, with a strong presence in countries including Brazil, Paraguay, Argentina, Uruguay, and Colombia.
The company’s lamb business will also receive a boost, with the addition of a new plant in Chile alongside its existing four plants in Australia.
Marfrig’s footprint in the beef industry will continue through assets such as Pampeano and its beef patties facility.