Brazilian meat, poultry and food processor Marfrig SA has clinched a deal to acquire at least six beef processing plants controlled by Brazilian company Frigorifico Mercosul for BRL418 million (US$128 million). Marfrig had previously been leasing the plants from Frigorifico Mercosul.
The plants involved in the acquisition are located in Capon Lion, Mato Leitão, Pirenópolis, Tucumán, New Londrina and Alegrete.
The transaction, which was announced on March 30, comes as global soy and corn prices have fallen nearly 50 percent since their highs in 2012, according to a report from Reuters. Feed prices for beef, poultry and pork can account for as much as 70 percent of companies' livestock production costs.
Headquartered in Curitiba, Paraná, Brazil, Marfrig serves markets in South America, Asia, Europe, North America, and the Middle East, with broiler, turkey, pork and beef product offerings. According to the WATT Global Media Top Companies Database, the company processes 405 million birds annually.
Marfrig is the parent company of the Keystone Foods, a company with global presence and operations in the development, production and distribution of poultry, beef, fish, pork and other products for the foodservice channel, headquartered in West Conshohocken, Pennsylvania. Marfrig is also the parent company to Moy Park, a leading provider of fresh, locally farmed poultry in the U.K. and Ireland.