BRF concluded the sale of its animal feed manufacturing activities and its hatchery in Romania, which were part of its Banvit and Nutrinvestment subsidiaries.
The Brazil-based company, in an announcement to the market, published on the BRF Investor Relations webpage, identified Aaylex System Group S.A. as the buyer. Aaylex will acquire 100% of those shares for a purchase price of EUR20.3 million (US$24.5 million), although BRF stated that the price will be subject to post-closing adjustments, which are common in such transactions.
The announcement was dated May 4 and is signed by Carlos Alberto Bezerra de Moura, chief financial and investor relations officer of BRF.
BRF announced in 2017 its intent to acquire a 60% share of Banvit, which is headquartered in Turkey and is the country’s largest poultry integrator. That acquisition marked BRF’s entry into the Turkish market and was done through a joint venture between BRF and the Qatar Investment Authority (QIA), the sovereign fund of Qatar.
At the time, Banvit had five feed plants, four hatcheries and five production plants. It’s product range includes turkey, deli products and convenience foods.
At the conclusion of the 2020 fiscal year, BRF CEO Lorival Luz highlighted a substantial turnaround for the company, having emerged from a consolidated net loss of BRL4.5 billion in 2018 to a net income of BRL1.4 billion in 2020.
At the time, Luz noted that a survey showed Banvit was the preferred brand among Turkish consumers, with 54% of survey respondents saying Banvit was their preference.
BRF, according to the Poultry International Top Companies Survey, is the second largest poultry company in Brazil and the third largest poultry company in the world. In 2019, the company slaughtered 1.55 billion broilers. The company is formerly known as Brasil Foods. It formed through the association of Sadia and Perdigao.