Brasil Foods S.A. has decided to merge its wholly owned subsidiary, Sadia S.A., by the end of 2012, according to the company's management. Sadia is a chilled and frozen food producer specializing in protein-based products including chicken, turkey, pork and beef.
According to Brasil Foods, the merger is part of a reorganization which started with the business combination between the two companies in 2009. Its main purpose is to accomplish the full integration of the two businesses, seeking to maximize synergies and to rationalize activities, with reductions in administrative and operating costs and increased productivity. The incorporation will result in estimated losses for Brasil Foods of R$215 million (US$124.9 million) in the fiscal year 2011.