BRAZIL: JBS acquires poultry firm Agroveneto
The acquisition, JBS said, complements its operations in the poultry segment in Brazil
Brazilian beef firm JBS has entered into an agreement to acquire local poultry processor Agroveneto.
The deal, announced today (5 November), valued Agroveneto at BRL$128m (US$62.9m), BRL10m of which is payable in JBS shares, the balance being debt assumption.
The acquisition will be the second move from JBS into the poultry sector this year after leasing the assets of Frangosul, controlled by French poultry producer Doux, early in the year.
The acquisition, JBS said, complements its operations in the poultry segment in Brazil. The Agroveneto business will be incorporated into JBS Aves, which now comprises four production facilities, with a daily capacity to process 1.34m birds.
The deal is subject to approval by the competition authorities and by the company's board of directors.
Agroveneto specialises in the production of chicken products and operates out of Nova Veneza in the southern Brazilian state of Santa Catarina. The firm produces and sells products both domestically and to export markets, mainly Asia, Europe and the Middle East.
JBS Signs a Term Sheet to Acquire Agroveneto
JBS S.A. (JBSS3) ("Company") communicates to its shareholders and to the market in general that the Company signed a term sheet on November 03, 2012 to acquire 100% of the shares of Agroveneto S.A.. The total value of the transaction is approximately R$128 million of which R$10 million payable in Company shares, the balance being debt assumption, the exact amount to be determined by a due diligence process initiated today. The deal is subject to approval by the competent authorities and by the Company's board of directors as well as to the conclusion of the due diligence.
Agroveneto is specialized in the production of chicken products and operates out of Nova Veneza in the southern Brazilian state of Santa Catarina. The plant has capacity to process 140,000 birds per day and sells a range of more than 30 different products both domestically and in the export market ranging from chilled and frozen cuts, spiced and breaded products as well as a line of Individually Quick Frozen (IQF) products, exporting mainly to Asia, Europe and the Middle East.
The acquisition of Agroveneto complements JBS operations in this segment in Brazil. This new production unit will be incorporated into JBS Aves which now encompasses four production facilities in this sector in Brazil with a daily capacity to process 1,34 million birds.
Original source: JBS
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