Marfrig Global Foods sells Moy Park to JSB
The Brazilian meat giant Marfrig Global Foods has sold its European chicken and meat business Moy Park to fellow Brazilian JSB. JSB pays $1,5 billion for the acquisition of Northern Ireland based Moy Park, the largest chicken processor of Great-Britain and one of the largest of Europe. The transaction is subject to approval by the competent authorities including antitrust agencies from the EU.
Marfrig, which will use the proceeds to bring down its debts, was preparing an IPO of Moy Park but has apparently had a change of mind. ”The sale of Moy Park will enable Marfrig to have a greater focus in pursuing growth opportunities identified in its strategic plan ‘Focus to Win’. The resulting Marfrig becomes a company with a stronger focus in foodservice, with greater flexibility to pursue existing opportunities in this market, mainly in the United States and Asia,” the company said in a presentation to analists. ”Despite Moy Park being a good business, it is highly focused on the retailsegment,” it added.
JBS investor relations officer Jeremiah O’Callaghan said the acquisition was an “important step in JBS’ strategy to grow its portfolio of prepared and convenient products with high value added, as well as increasing the company’s geographic diversification, with an expansion of the European operations.”
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