Moy Park in Brazilian hands
Marfrig Frigorificos e Comercio de Alimentos S/A
announced today that it will acquire OSI Group's poultry businesses in Brazil
and the United Kingdom including poultry processor Moy Park.
Marfrig will acquire OSI's Moy
Park Group, consisting of the vertically integrated Moy Park
Limited poultry business in Northern Ireland, England and France,
as well as the value added vegetable and specialty bakery businesses of Kitchen
Range Foods Limited in England and Albert van Zoonen B.V. in the
The Brazilian and European businesses being purchased are
closely integrated in providing a poultry supply chain solutions for European
customers. The combined company will become one of the top ten poultry
processors in the world.
The OSI Group's Brazilian businesses that will
be purchased by Marfrig consist of Braslo Produtos de Carnes Ltda., a value
added beef and poultry processor, and Penasul Alimentos Ltda. and Agrofrango
Industria e Comercio de Alimentos Ltda., vertically integrated poultry
OSI shareholder in Marfrig
The total sales
represented by the OSI Group's companies acquired are nearly US$ 2 billion. The
deal is valued initially at US$680 million in a combination of cash (US$ 400 mm)
and Marfrig common shares (US$ 280 million at market value following completion
of the transaction) which are listed on the Sao Paulo Stock Exchange and with a
potential additional payment in the future of up to US$220 million linked to
future performance in the European businesses.
As a result of the
transaction, OSI Group will be a significant shareholder in Marfrig. The
transactions are expected to be completed in the second half of 2008 after
normal regulatory compliance.
In addition, David McDonald, President and
Chief Operating Officer of OSI, will join the Board of Directors of
New business group
The Brazilian OSI operations will
join the current Marfrig businesses in Brazil, while the European operations
will constitute a new business group for Marfrig. In the new European business,
Marfrig will offer a complimentary range of its food products.
virtue of its retained ownership in Marfrig will expand its sourcing platform in
Marfrig is the largest Beef processor in Uruguay and
Argentina, the second largest in Brasil and the fourth worldwide. With the
addition of the OSI Brazilian poultry operation the new company will now rank in
the top five in Brazil.
Marfrig also has a substantial pork operation in
Brazil. This platform will enhance the OSI global procurement organization's
ability to source a variety of proteins in providing the OSI group's customers
in global QSR restaurant, retail grocery, and branded consumer foods with a
global competitive advantage.
Marfrig is based in Santo Andre, Sao Paulo,
Brazil. It also has major operations in pork, lamb and poultry, supplying
customers primarily in Latin American European and US markets.
LLC is a global food processor headquartered in Aurora, Illinois
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