Beef giant Minerva Foods has agreed a deal to buy cattle slaughtering and deboning plants from Brazilian meat-processing peer Marfrig.

Minerva will pay 7.5bn reais ($1.53bn) for the assets, which are located in Argentina, Brazil, Chile and Uruguay.

The deal includes eleven plants and a distribution centre in Brazil, three plants in Uruguay and one “industrial unit” in Argentina, Minerva said. The company has also bought a lamb plant in Chile.

Fernando Queiroz, the CEO of Minerva Foods, said the acquisition “will take our company to another level”.

Tang David, Marfrig’s CFO, said the company would “remain dedicated and focused on value-added products, with high-performance production processes”.

The deal will expand Minerva’s cattle slaughtering and deboning capacity by 44% to 42,439 head a day.

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Due diligence showed the net revenue from the plants would take the company’s annual net revenue above 50bn reais, it added. In 2022, Minerva’s net revenue stood at 31bn reais, which the business said was a record for the group.

“We are very excited about this move, which is in line with our geographical diversification strategy, and which uniquely complements our operation in South America, which is one of the most competitive markets in the world,” Queiroz said. “This will take our company to another level, give us access to new international clients, maximise commercial opportunities and operational synergies, reduce risks, and expand our ability to compete in the international animal protein market.”

Marfrig said it would still be present in the country’s beef sector through assets including canned-food manufacturer Pampeano and a beef patties facility in Bataguassu.

After the acquisition, Minerva will have 40 beef cattle slaughter and deboning plants: 21 units in Brazil, five in Paraguay, six in Argentina, six in Uruguay, and two in Colombia. Its lamb business will have five plants – four plants in Australia and the new site in Chile.

The company also pointed to beef product facilities in Argentina and Uruguay.

Marfrig, which is the largest shareholder in Brazil-based poultry group BRF, also controls US beef producer National Beef.