Brazil-based food group BRF is to set up a venture in Singapore through a deal with local company Singapore Food Industries.
BRF will pay US$19m for a 49% stake in the venture, to be called SATS BRF Food. Sinagpore Food Industries is owned by SATS, a business that runs ground handling and airline catering operations at over 40 airports across Asia Pacific and the Middle East.
SFI will contribute its food distribution business, which will include the sublease of two meat processing facilities and a warehouse. The two sides have also signed a licence agreement for the use of certain brands and trademarks in Singapore.
"Leveraging on BRF's fully integrated supply, go-to-market operations, product development and global branding capabilities, as well as SATS' domain knowledge of Asian local markets and state-of-the-art production facilities, SATS BRF will focus on expanding supply of high value added, semi-processed meat and further processed food products, initially for the Singapore market," BRF CFO Augusto Ribeiro said.
He added: "The transaction is in line with BRF's strategic plan of globalising the company by means of reaching local markets, strengthening BRF's brands and distributing and expanding its product portfolio around the globe."