BRF has said that it plans to take full control of Oman-based frozen food distributor Al Khan Foodstuffs (AKF).
The Brazilian meat group already holds a 40% stake in AKF. BRF did not reveal financial details of the deal, but the company did say that the transaction gives AKF an enterprise value of US$63m.
“The transaction is in line with BRF’s strategic plan for globalising the company, accessing local markets, strengthening BRF’s brands, distribution and expansion of its product portfolio around the globe,” the company said in a regulatory filing.
BRF has been expanding its international presence via M&A and organic expansion. Most recently, the company announced the opening of an office in Malaysia to support growth in Asian and Middle Eastern markets.
BRF’s 2015 revenue was boosted by a strong top line performance in its Middle East and Africa reporting segment, where sales increased 25.9% on 2014’s levels. The company is strengthening direct distribution in the Gulf region, which helped the company gain a bigger portion of the profitability in the chain and to reduce the volatility of prices in the region.