Blog: Could Marfrig be eyeing M&A, disposals?
Dean Best | 26 March 2013
Marfrig, the Brazilian meat giant, has created a new senior position - and filled it with an executive with experience in M&A.
The company said today (26 March) it has appointed former Credit Suisse and Deutsche Bank executive Jaime Singer to a new role of vice president of strategic planning.
Singer will report directly to chairman and CEO Marcos Molina dos Santos. Marfrig said: "The hiring of the new vice-president represents yet another step forward in strengthening the strategic management of the company, which will result in an even more professional and correct corporate governance and further enhance the strategy of the Marfrig Group at the global level."
But could it also mean Marfrig steps up its M&A activity. Marfrig's last significant transaction was in 2011 when it swapped assets with local rival Brasil Foods, which embarked on the deal to clear the merger that created it.
In 2010, Marfrig made two deals in two months. In May that year, Marfrig's UK unit Moy Park bought Northern Irish processor O'Kane Poultry. A month later, Marfrig agreed a much bigger acquisition, when it struck a deal to buy US meat group Keystone Foods for US$1.26bn. And don't forget in 2009 Marfrig made a signifcant domestic deal when it bought Brazilian group Seara Alimentos from Cargill.
Marfrig has largely kept its powder dry since then. However, with demand for protein shooting up across emerging markets (including in its own backyard), Marfrig could look to M&A to boost its presence and grab a slice of that demand.
On the other side of the coin, Marfrig has itself reportedly attracted interest in the last six months. In August, Bloomberg said private-equity giant Blackstone and US meat giant Tyson Foods was mulling whether to buy a stake in Marfrig, although nothing came of it.
Marfrig has seen its debt grow in recent years and asset sales could be an option. In December, it sold BRL924m (US$460.8m) in shares, although this was less than expected.
In January, Marfrig brought in US$600m through a bond issue, which it said would "improve the long-term debt profile of the company".
The group reports its results for 2012 on Thursday. Perhaps the compacy will shed some light on its plans then. In any case, analysts will be watching.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
- Danone's Q1: four things to learn
- Who will buy Danone's Stonyfield business?
- Column: Why snacking is the new meal
- Interview: Sir Kensington's on sale to Unilever
- Nestle Q1 update: four things to learn
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- PepsiCo affirms full-year target as Q1 hits mark
- Icelandic to sell Saucy Fish Co. owner Seachill
- Tyson to buy burger-to-entree firm AdvancePierre