Meat processors continue consolidation
by June 9, 2013 9:52 pm 143 views
Meat giant JBS, parent company of Pilgrim’s Pride, said it will pay as much as $3 billion in cash and assumed debt of Seara Brasil poultry to expand its footprint and marketshare in Brazil.
JBS is a major meat competitor to Tyson Foods Inc.
Reuters reported JBS will hold a news conference Monday (June 10) to announce the details of its pending acquisition. Seara is owned by JBS's rival competitor Marfrig.
The deal will help JBS, Brazil's dominant beef processor, boost its share of the country's poultry and pork market while helping Marfrig cut its $6.1 billion debt burden racked up after a series of recent takeovers of smaller rivals, Reuters reported.
The sale will make Marfrig, Brazil's No. 2 poultry and pork producer, a significantly smaller company.
Seara Brasil’s sales rose 48% in the first quarter of 2013 and accounted for about one-third of Marfrig’s total revenue.