Marfrig sells Keystone for $2.4 bi for Tyson, but keeps u.s. Burger plant

SAO PAULO (Reuters)-the Marfrig (MRFG3.SA) celebrated final contract with u.s.-based Tyson Foods (TSN. N) for the sale of all of your participation in the Keystone Foods for 2.4 billion dollars, the brazilian company announced on Monday, in a move to reduce your financial leverage and focus on the beef operations. The transaction includes the sale of all assets of Keystone Foods, with the exception of a hamburger plant of North Baltimore, Ohio, with annual capacity of 91000 tonnes of processed product — one of the largest plants of u.s. Burger. "The decision to continue with the plan of North Baltimore is in line with the company's strategy to focus on growing cattle, including the recent acquisition by the company of majority interest in the National Beef Packing Company, whose control has been acquired by Marfrig in June 2018, "the company said in fact. The total value of the business (enterprise value) is approximately 2.4 billion dollars, which is considered an ' equity value ' for the Marfrig of 1.4 billion dollars after the liquidation of the debt and other adjustments, Marfrig said. The closing of the transaction is subject to approval by regulators and the equity arm Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the BNDESPar. Marfrig stock closed in fall of 9,3% on Friday, the largest fall in nearly three years, after the news that the company had closed the sale of the Keystone for 2.4 billion dollars. The value, according to ITA BBA, came below what had been suggested in the media as the value desired by the Marfrig.