Minerva Foods Acquires Cattle And Lamb Slaughter And Deboning Plants From Marfrig In South America

(MENAFN- PR Newswire) The BRL 7.5 billion investment will increase the company's slaughtering capacity to over 42,000 head a day. With the move, the company reinforces its leadership in the beef market in South America and its position as the largest exporter in the region.

SÃO PAULO, Aug. 29, 2023 /PRNewswire/ -- Minerva Foods (Minerva– B3: BEEF3 | OTC – Nasdaq International: MRVSY), a leader in exports of fresh beef and its derivatives in South America, announces the acquisition of Marfrig's cattle slaughtering and deboning plants in South America Sul for BRL 7.5 billion. The transaction is subject to analysis and approval by the respective competition authorities.

With this transaction, Minerva Foods takes a step forward in its operations in the beef market: the company will expand its cattle slaughtering and deboning capacity to 42,439 head a day, compared to its current volume of 29,540 head a day, representing an increase, therefore, of approximately 44%. Based on the sensitivity analysis carried out for the operation, therevenue from the acquired plants added to the company's currentrevenue will result in an amount in excess of BRL 50 billion. Other competitive advantages of the transaction include logistical synergies, opportunities to expand and improve distribution, and increased access to international customers, reinforcing the company's leadership in beef exports from South America.

Eleven plants and one Distribution Center will be acquired in Brazil, one industrial unit in Argentina, and another three plants in Uruguay. The deal also involves the purchase of one lamb plant in Chile, contributing to the protein diversification strategy, and operating in niche markets with high added value.

In total, the company now has 40 cattle slaughter and deboning plants: 21 units in Brazil, five in Paraguay, six in Argentina, six in Uruguay, and two in Colombia. In the lamb segment, the company now has five plants and a total slaughtering and deboning capacity of 25,716 head a day, four plants in Australia and one plant in Chile, expanding its access to premium markets.

The movement also helps Minerva Foods better position itself to meet the growing global demand for beef, through the number one platform in terms of efficiency for this protein from South America.

According to Fernando Queiroz, CEO of Minerva Foods, the company has been investing daily for more than 30 years to get the best quality beef to different international markets, and this operation, in addition to reaffirming the company's leadership in beef exports from South America, is another step in its mission to contribute to sustainable food for the planet.

"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. This will take our company to another level, giveaccess to new international clients, maximize commercial opportunities and operational synergies, reduce risks, and expand our ability to compete in the international animal protein market," adds the executive.

The deal also strengthens Minerva Foods' position in the domestic market, with the company becoming the second-largest producer of beef in the region, in a diversified and very competitive market. This creates value for different markets: producers, with whom Minerva Foods has always sought to establish a partnership relationship through variinitiatives, not just commercial, but technical and financial support, a commitment to good production practices, and incentives for sustainable action, and who will now be able to further strengthen their commercial relationships with the company; customers, who will have more premium and high value-added products, considering the increase in the company's production capacity; employees, who will have more professional opportunities, with the company's growth and a greater volume of industrial units among the company's assets; shareholders, with the company's growth and the creation of value in the medium and long term; and society in general, as the movement strengthens South America's competitiveness in meeting the world's demand for beef protein.

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Paola Souza
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SOURCE Minerva Foods


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