Brazilian meat, poultry and food company BRF, through its subsidiary BRF GmbH, has signed an agreement with British company Invicta Food Group Limited (IFGL) to form a joint venture with the main objective to distribute processed food in the U.K., Ireland and the Nordic countries of Norway, Sweden, Finland, Iceland and Denmark.
Under the agreement, BRF GmbH will offer its service network in the region, and will pay GBP18 million (US$27 million) for a 62 percent stake in the joint venture. Invicta will offer its own operations, with a strong presence in U.K. food services, in return for the remaining 38 percent stake in the venture.
BRF stated that the transaction is in line with the strategic plan to globalize the company, accessing local markets, strengthening BRF‘s brands, distributing and expanding its product portfolio around the globe.
The transaction marks the second major business venture BRF has become involved with in one week’s time. The company announced on April 16 that it has invested US$19 million in a new venture with Singapore Food Industries to run meat processing facilities in Singapore. BRF will have a 49 percent stake in that venture.
Formerly known as Brasil Foods, BRF processes 1.83 billion birds annually, according to the WATT Global Media Top Companies Database. The company’s key product categories include chicken, turkey and pork.