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BRF to invest $496m for acquisitions in Argentina, Thailand and Britain

Published 04 December 2015

Brazilian food company BRF is planning to invest around $496m to acquire firms in Argentina, Thailand and Britain.

BRF acquisitions

In securities filing, the poultry exporter stated that it has entered into a binding offer for the acquisition of Dutch company Eclipse Holding Cooperatief for an enterprise value of $85m.

Eclipse Holding Cooperatief owns controlling stake in Campo Austral, a group of firms with operations in pork and cold-cuts in Argentina, reported Fox News Latino.

Additionally, BRF's global subsidiary BRF GmbH is acquiring Golden Foods Siam, a Thailand-based poultry producer, from Navis Capital Partners, a Malaysian private investment firm, for $360m, reported the publication.

These deals are a part of the company's global expansion plan to gain access to overseas markets, thereby fortifying its brands and distribution network, and building its product portfolio, reported The Poultry Site.

The completion of the transaction is subject to certain customary conditions that have been inked in the share purchase agreement.

Separately, BRF also signed a memorandum of understanding (MOU) to acquire the complete issued share capital of Universal Meats, a UK-based food distributor, for £34m.

Last month, the company announced plans to expand its production facility in Abu Dhabi, UAE. The firm intends to cater to the growing needs of new markets such as North Africa, sub-Saharan Africa and Asia with the expansion.

Earlier this year, BRF initiated a joint venture with UK-based Invicta Food Group to distribute processed foods in Britain, Ireland and Scandinavia.

Reuters reported citing a securities filing that the company's subsidiary, which will offer its service network in the region, would pay $27m to hold 62% stake in the joint venture. Invicta, which has a strong presence in UK food services, would hold the remaining shares in the new venture.

Image: BRF is on an acquisition spree. Photo: Courtesy of Serge Bertasius Photography/FreeDigitalPhotos.net.