Marfrig Global Foods S A : South America Operation - Portfolio Optimization
August 28, 2023 at 06:59 pm EDT
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PORTFOLIO OPTIMIZATION
FOCUS ON VALUE-ADDED
AUGUST 2023
The Transaction
OVERVIEW
On August [28th], 2023, the Board of Directors of Marfrig Global Foods, in line with its vision of repositioning the company to focus on value-added products, branded meat and processed products, approved the signing of a Purchase Agreement with Minerva Foods for the sale of 11 beef units located in Brazil (including 3 inactive), 1 beef unit in Argentina, 3 beef units in Uruguay and 1 lamb unit in Chile, and 1 Distribution Center in Brazil.
The total value of the transaction is equivalent to R$ 7.5 billion, to be paid as below:
R$ 1.5 billion on the signing
R$ 6.0 billion at the closing of the Transaction (with bank guarantees)
Considering the revenue of the assets sold of R$ 15.6 billion in 2022, the transaction has an implied multiple of 0.5x FV / Revenue.
After the transaction, Marfrig will continue to operate in the beef segment in South America, focusing on the production of value-added products.
NEXT STEPS
The Closing of the Transaction is subject to the approval of the anti-trust authorities.
2
Transaction rationale
CONSISTENCY IN STRATEGIC EXECUTION CAPITAL ALLOCATION IN VALUE-ADDED
Acquisition of
33% of BRF
Marfrig becomes the
largest hamburger
producer in the world
Acquisition of
National Beef:
hamburger company
Campo del Tesoro
strategic shift to focus
Acquisition of Quickfood
(Argentina)
on beef protein and
high value-added
Acquisition of the Várzea
products in North
Grande complex
America
Board of Directors
Expansion capex on
reaffirms strategic
positioning
the industrial
complexes of
Várzea Grande,
Promissão, Tacuarembó
Inauguration of
and San Jorge
world's most
modern hamburger plant in Bataguassu
2 0 1 8
2 0 1 9
2 0 2 0
2 0 2 1
2 0 2 2
2 0 2 2
2 0 2 3
3
Transaction rationale
PORTFOLIO OPTIMIZATION
1 Strengthening and coherence with Marfrig's strategic plan, which started in 2018, to focus on high value-added products
2 Rationalization of operations in South America, with the maintenance of industrial complexes, with greater scale and relevance to the Company's strategy
3 Increase exposure in value-added products, with strong brands, which contribute with higher margins and resilience to the consolidated operation's result
4
The Transaction
POST TRANSACTION
STRUCTURE
Marfrig
South America
Industrial
Complexes
4 plants in Brazil
4 plants in Argentina
2 plants in Uruguay
Capacity:
Slaughter: 7k heads / day
Deboning: 44k pieces, equivalent to 11k heads / day Processed: 244k ton / year
Other
Units
1 feedlot in Uruguay
3 DCs in Brazil
4 DCs in Chile
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Disclaimer
Marfrig Global Foods SA published this content on 28 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 August 2023 22:56:52 UTC.
Marfrig Global Foods S.A. pecializes in the production and processing of beef and lamb. The group is also developing a feed manufacturing business.
At the end of 2021, the group had over 30 production sites worldwide.
Brazil accounts for 76.1% of net sales.
MARFRIG GLOBAL FOODS S.A. 
