Japan’s NH Foods is to buy Uruguayan major meat processing company Breeders & Packers Uruguay (BPU) to increase its meat supply capacity in emerging markets and to tap the major mature beef consumption markets in North America and Europe.
The US$135m acquisition from the UK-based Hoxton Holdings was announced on Friday (28 April). BPU is expected to be established as a consolidated subsidiary of NH Foods by March 2018, the end of Japan’s 2017 fiscal year.
The deal is part of NH Foods’ policy to expand its overseas business. In a statement, NH Foods said it “sees potential” in using its experience in developing a major meat production operation in Australia “to expand in South America, thereby raising its company value”.
NH Foods added: “BPU has the highest track record in meat processing of any independent company in Uruguay, processing products using state-of-the-art facilities for export to China, Europe, the United States.”
The country’s high level of traceability and transparency in its animal husbandry also helped persuade NH to make the acquisition, it said.
BPU supplies products including beef flank, rump, shank and loin cuts, as well as knuckle, brisket and neck meat.