BRF has announced its intent to sell its Argentinian poultry subsidiary, Avex, for a price of US$50 million.
In a notice to the market, posted on the BRF website on December 19, BRF, formerly known as Brasil Foods, has reached an agreement with Granja Tres Arroyos and Fribel, in which the two companies will acquire 100 percent of the capital stock of Avex in a joint venture.
There are three Avex plants in Argentina. They are located in in Llavalol, Villa Mercedes, and Rio Cuarto.
Avex currently has a slaughtering capacity of 160,000 birds per day.
In addition to producing poultry products, Avex is involved in the production of margarine, sauces, olive oil and bakery ingredients.
BRF, headquartered in Brazil, initially invested in Avex in 2011. The company furthered its stake in Avex in 2013 by acquiring the remaining shares.
BRF, in an effort to improve its financial position, stated in June it had planned to sell its operational units in Argentina. At the same time, it announced it intended to divest of assets in Europe and Thailand, so it could concentrate on its most profitable markets in Brazil, Asia and in regions with a high Muslim population.
Earlier this month, BRF announced an agreement it reached with Marfrig Global Foods, in which Marfrig would acquire a nearly 92 percent stake in Quickfood, an Argentinian beef company, from BRF. Marfrig recently sold its Keystone Foods unit to Tyson Foods, citing a desire to focus further on its beef operations.
BRF, according to the WATTAgNet Top Poultry Companies Database, is the second largest poultry company in both Brazil and South America, trailing only JBS. It is the third largest poultry company in the world, with JBS ranked first and Tyson Foods second.
Granja Tres Arroyos is the largest poultry company in Argentina and the seventh largest poultry company in South America. It slaughtered 129.4 million broilers in 2017, while BRF slaughtered 1.724 billion broilers in 2017.
The proposed sale of Avex is subject to regulatory approval.
