Over the last five years, Marfrig bought 22 companies around the world, multiplying its annual sales revenue by 10, converting the company in the third-largest world meat processor, and its CEO, and owner, Mr. Marcos Molina, a former butcher, into one of Brazil’s most powerful entrepreneurs.
This strong, fast growth came at a price. After finishing the string of acquisitions, the company had a debt of US$4.59 billion. Investors, scared by the figure, fast ran away. Marfrig market value today is 40 percent lower than when it opened its capital, in 2007.
Before the situation, Mr. Molina decided it was time for a reversion - according to market sources, the company hired an investment bank advisory to help in the sale of 40 percent of Seara's capital, Marfrig’s processed meats and foods division. Including operations and the brand names Seara, Keystone and Moy Park, it responded for US$8.7 billion sales in 2011, 67 percent of Marfrig’s sales in the period. With the sale of 40 percent of Seara's capital, Marfrig expects to obtain US$1.17 billion, thus reducing its debt while turning it out to be financially healthier.
Over the last five years, Marfrig bought 22 companies around the world, multiplying its annual sales revenue by 10, converting the company in the third-largest world meat processor, and its CEO, and owner, Mr. Marcos Molina, a former butcher, into one of Brazil’s most powerful entrepreneurs.
This strong, fast growth came at a price. After finishing the string of acquisitions, the company had a debt of US$4.59 billion. Investors, scared by the figure, fast ran away. Marfrig market value today is 40 percent lower than when it opened its capital, in 2007.
Before the situation, Mr. Molina decided it was time for a reversion - according to market sources, the company hired an investment bank advisory to help in the sale of 40 percent of Seara's capital, Marfrig’s processed meats and foods division. Including operations and the brand names Seara, Keystone and Moy Park, it responded for US$8.7 billion sales in 2011, 67 percent of Marfrig’s sales in the period. With the sale of 40 percent of Seara's capital, Marfrig expects to obtain US$1.17 billion, thus reducing its debt while turning it out to be financially healthier.
