JBS agrees to acquire Brazil’s Frigorífico Marba

JBS has entered an agreement to acquire Frigorífico Marba Ltda., the Brazil based company announced on November 6.

Roy Graber Headshot
onephoto, Bigstockphoto.com
onephoto, Bigstockphoto.com

JBS has entered an agreement to acquire Frigorífico Marba Ltda., the Brazil based company announced on November 6.

In a notice to the market, JBS described Frigorífico Marba as one of the most traditional brands of cold cuts and sausages, and a reference in the bologna segment in the Brazilian State of São Paulo. Frigorífico Marba has annual revenues of around BRL350 million (US$85.7 million).

The planned acquisition would be made through the JBS subsidiary, Seara Alimentos Ltda.

Terms of the proposed acquisition were not disclosed. According to the notice, which was signed by JBS Investor Relations Officer Guilherme Perboyre Cavalcanti, the closing of this transaction is subject to the approval of the Brazilian Administrative Council for Economic Defense - CADE, among other usual conditions for this type of transaction.

Earlier in 2019, JBS announced it is in the process of acquiring a pork processing plant in Seberi, in the Brazilian state of Rio Grande do Sul, having reached an agreement with Adelle Industria de Alimentos Ltda., and other guarantor parties, that it would purchase the pork plant as well as its integration system.

The proposed Frigorífico Marba deal comes at a time when JBS is under scrutiny for past acquisitions of U.S. companies. U.S. Sens. Marco Rubio and Bob Menendez in October requested that the Committee on Foreign Investment in the United States (CFIUS) conduct a formal review of the transactions involving U.S. companies that were made over the past 12 years by Brazilian meat and poultry company JBS. Rubio, R-Florida, and Menendez, D-New Jersey, made the request in a formal letter written to U.S. Treasury Secretary Steven Mnuchin.

Among the JBS transactions involving U.S. companies mentioned by the senators include the acquisition of the majority stake in Pilgrim’s Pride, the acquisition of Cargill’s U.S. pork processing operations, the purchase of Swift Foods and the acquisition of Smithfield Foods’ beef processing operations.

JBS, according to the WATTAgNet Top Poultry Companies Database, is the world’s largest poultry company.

Page 1 of 1575
Next Page