Marfrig buying OSI Group businesses in Brazil, Europe

by Staff
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SAO PAULO ― Marfrig Frigorificos e Comercio de Alimentos S.A., is buying OSI Group’s businesses in Brazil and in several European countries. The acquisition includes 15 plants that generate revenues of approximately $2 billion.

The acquisition is valued initially at $680 million, and includes a combination of cash ($400 million) and Marfrig common shares ($280 million at market value following completion of the transaction). The acquisition also may feature an additional payment in the future of up to $220 million linked to future performance in the European businesses.

Brazilian OSI Group businesses being acquired include Braslo Produtos de Carnes Ltda., which is a supplier of beef and poultry for fast-food chains; Penasul Alimentos Ltda, a vertically-integrated poultry processor of pork and poultry industrialized products and owner of the "Pena Branca" brand for the Southern region of Brazil; and Agrofrango Industria e Comercio de Alimentos Ltda, a vertically-integrated poultry processor.

Marfrig also is acquiring OSI’s Moy Park Group in the United Kingdom, which is the fourth-largest company in Northern Ireland with plants in Ireland, England, France and The Netherlands. M.P.G. is the largest vertically-integrated poultry processor and supplier of further-processed and value-added chicken products in the United Kingdom and also has further-processing manufacturing facilities in France. This acquisition also includes Kitchen Range Foods Ltd., which produces and distributes frozen, further processed vegetables, non-meat substitutes and bakery products in the United Kingdom, and Albert Van Zoonen B.V., with activities in the production and distribution of frozen further processed food products in The Netherlands.

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