Acquisition of Seara, the JBS, Marfrig involves about $ 5.5 billion

Sao Paulo-the fridge Marfrig Announces on Monday, 10, the sale of the harvest in Brazil to JBS in an operation estimated at R $ 5.5 billion, which can also include other assets of the group, told the ' State ' sources close to the negotiation. With the transaction, the 30% size loses Marfrig, but, on the other hand, manages money for more than 60% reduction in net debt, which in March was $ 9.95 billion, the report found.
JBS group closes the acquisition of Seara
Sponsorship contract with the harvest may be terminated by CBF
The acquisition of Seara by JBS was anticipated on Saturday by State columnist blog Sonia Racy.
The sale of the harvest was found by Marfrig output to reduce debt quickly and gain financial breathing space to re-grow. "With business, Marfrig do not need to sell other assets," said a source close to the company.
The financial relief will allow the business considered strategic preserve Marfrig globally. The most important of these is the Keystone Foods, which operates in more than 50 countries and has access to the Chinese market.
Seara was one of about 40 acquisitions made by Marfrig over the past five years, in a strategy to grow rapidly, but that made the debt levels considered too high by the market. The harvest was bought from Cargill in September 2009, for just over $ 700 million.
Today is the second largest producer of poultry meat and pork in Brazil, behind leader BRF, with presence also in the area of processed foods such as pizzas and lasagnas, and annual revenue of $ 7.14 billion, according to data from 2012. Part of the expansion was due to the help of Banco Nacional de Desenvolvimento Econômico e Social (BNDES), which in 2010 bought $ 2.5 billion of debentures of the company in a bid to transform the group into a global food giant. The banco de fomento, which also has strong participation in JBS, declined to comment on the deal.
Synergy. If the Marfrig saw his appetite for acquisitions reduced the debt, the JBS continues to buy on the market. "The harvest products are complementary to the JBS portfolio, mainly in the area of chickens and sausages. JBS WINS in market segments where there is strong and can take advantage of synergies in the distribution of products, "said the consultant in the area of food and beverage Adalbert Viviani.
For him, the JBS tends to move in all categories of frozen and refrigerated products. The dairy unit of the group, the force announced this year the purchase of the traditional milk and cream cheese manufacturer Itambé. "The area of refrigerated foods is consolidating as a business for large companies and with a strong capital structure. In this sense, the control of the harvest by JBS creates a stronger competitor to the BRF and with more Ghana to grow (than under the command of Marfrig). "
The purchase of the harvest is an important step in the expansion of JBS to ensure relevant participation in the bird market in Brazil, the segment that represents 40% of the protein consumed in the country. The group is the largest global producer of beef, but it still has shy presence in the area of chickens in the country. Entered the local market in 2012, with the lease of Doux Frangosul units. In 2012, his ability to slaughter birds in Brazil was 1.34 million a day-20% of the capacity of the BRF. Abroad, however, JBS already leads the production of broilers, with 8.5 million birds slaughtered per day.