Rica Foods, Inc (Amex:RCF) announced today it has reached an Agreement for the acquisition of a 75% common interest in Avicola Core Etuba, Ltda (”Core Etuba”), a Brazilian fully integrated poultry company of Curitiba, Brazil. ”This acquisition represents our most important step this year towards consolidating operations abroad, thus enhancing our product and costumer base. We intend to close this acquisition on April 30, 2001,” said Mr. Calixto Chaves, Rica Foods’ Chairman and Chief Executive Officer.
Core Etuba recently acquired the operations of a fully integrated poultry operator located in Curitiba, State of Parana, Brazil’s main producer of yellow corn and soybean meal, which are the two main ingredients in our chickens’ diet. ”We have landed in Brazil and we are ready to work our way into its demographics,” Mr. Chaves said today. ”We expect our quality products and marketing techniques to be an interesting alternative to the local customers,” Mr. Chaves concluded.
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RCF will pay US $3.5 million cash for the 75% stake and has secured the remaining 25% common interest in an option to buy at US $1.7 million cash. Core’s current total sales for the six months ended December 31, 2000, totaled US $4.4 million, and US $229,322 in net income for the same period.
