Nearly one year after JBS SA announced its plans to acquire the margarine and mayonnaise assets from Bunge Alimentos SA in Brazil, the company has finalized the acquisition.
JBS, in a material fact on its investor relations webpage, announced on November 30 that the acquisition has been completed, in accordance with the terms of the Brazilian Securities and Exchange Commission Instruction No. 358.
The former Bunge assets will become part of JBS’ Seara subsidiary, according to the material fact, which was signed by Guilherme Perboyre Cavalcanti, JBS investor relations officer.
The acquisition includes three production facilities located in Gaspar, São Paulo and Suape. The acquisition of these facilities and associated brands -- including Delícia, Primor and Gradina -- strengthens Seara’s position in the Brazilian margarine segment, in addition to optimizing its distribution platform, the company stated, and is aligned with the company’s strategy to expand its portfolio of value-added and branded products.
JBS, in a notice to the market dated December 20, 2019, stated that it made an offer to acquire those Bunge assets for a price of BRL700 million (US$172.3 million). The transaction, according to that notice, provides manufacturing contracts and trademark licensing.
The closing of this transaction was subject to the approval of the Brazilian Administrative Council for Economic Defense (CADE), among other usual conditions for this type of transaction.
2020 has been a year relatively free of mergers and acquisitions for JBS. It’s last reported activity occurred in February, when it announced it reached an agreement to acquire the U.S.-based Empire Packing Company’s case-ready meat production facilities and its Ledbetter branded products. Those facilities are located in Cincinnati, Ohio; Denver, Colorado; Mason, Ohio; Memphis, Tennessee; and Olympia, Washington.
JBS, a diversified global meat, poultry and food company, is headquartered in Sao Paolo, Brazil. According to the WATTPoultry.com Top Companies Database, it is the world’s largest broiler company and slaughters about 4.04 billion birds annually.
It is also involved in turkey production, and is a leading global producer of pork and beef products.