ARGENTINA: Brasil Foods acquires rest of Avex
Brasil Foods buys rest of Avex
Brasil Foods has increased its foothold in Argentina by acquiring all remaining shares in Argentine poultry producer Avex.
A spokesperson for Brasil Foods (BRF) confirmed to just-food today (2 January) that the poultry and pork processing firm has acquired the 33% stake in Avex it did not already own. The deal is worth US$40.5m and is expected to complete within the first quarter of 2013.
BRF also said that, through the Avex acquisition, it has acquired all remaining shares in Argentina-based Flora Danica, Flora San Luis and GB Dan (Grupo Danica), which specialise in spreads and sauces.
The move is part of BRF's strategy to enhance its presence in Argentina, which it hopes to develop as an export base. Avex is already one of the country's largest poultry producers and exporters.
"This transaction will allow BRF to integrate its business in Argentina, including the operations of Quickfoods (acquired in July), as well as to gain synergies for integrated business," said the group today (2 January). A BRF spokesperson declined to comment further on the firm's plans.
In October 2011, BRF acquired a stake of around 67% in Avex and, through this, a controlling stake in Flora Danica. It also committed to increase production capacity at the companies, in a total deal worth $150m.
In November 2012, BRF reported a 75% plunge in net profits for its fiscal third-quarter, with comparable EBITDA down 22% on the same period of last year. It blamed the fall on higher grain feed prices, although net sales for the same period rose by 14%.
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