Brazilian meat processor JBS has entered an agreement to acquire the margarine assets of local business Bunge Alimentos for BRL700m (US$170.6m).
The deal is being conducted via JBS’s wholly-owned subsidiary Seara Alimentos and will include the retail brand names Delícia and Primor, as well as Gradina, which is supplied to foodservice channels. The meat giant said in a statement late last week that the “transaction provides, among others, manufacturing contracts and trademark licensing”.
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Bunge Alimentos, which is a unit of US-based agri-food business Bunge, owns three production facilities located in Gaspar in the state of Santa Catarina, Sao Paulo in the state of the same name, and Suape in Pernambuco.
The deal needs the approval of the Brazilian Administrative Council for Economic Defense, with the expected closing date not revealed in the statement.
“This acquisition strengthens Seara’s position in the Brazilian margarine segment, optimising its distribution platform and is aligned with the company’s [JBS’s] strategy to expand its portfolio of value-added and branded products,” according to the statement.
The same strategic reasoning was given for the deal struck in November to acquire Brazilian cold-meats business Frigorífico Marba, also via Seara, for an undisclosed sum. JBS’s efforts to provide more value-added products included the launch of a plant-based range earlier this year, Incrível Burger Seara Gourmet.
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By GlobalDataOther deals initiated by JBS and its subsidiaries in 2019 include Brianza Salumi, bought by Italian cured-meat specialist Rigamonti, and Adelle Food Industry, a manufacturer of prepared pork products such as ham, sausage and bacon. In August, JBS’s unit, US-based Pilgrim’s Pride, acquired UK meat processor Tulip from Danish Crown.
Bunge said in its own statement the deal also includes mayonnaise, while products such as fats and bottled oils will remain with Bunge Alimentos.
Gregory Heckman, the global chief executive for Bunge, said: “This transaction simplifies our operations in Brazil by focusing on our main activities, besides offering value for a solid business. It also represents another step in executing the optimisation of our portfolio.”
