JBS SA buys Brazilian poultry processor for $63 million
Brazil's JBS SA, the world's largest beef producer, said on Monday it signed a deal to buy local poultry processor Agroveneto for 128 million reais ($63 million) just months after its first move into the Brazilian poultry sector.
JBS said in a statement that it would acquire Agroveneto, which specializes in ground poultry meat and is based in the southern state of Santa Catarina, by taking on its debts plus giving the owners 10 million reais worth of JBS shares, reports Reuters
The deal must still be approved by the JBS board and regulatory authorities.
Agroveneto has capacity to process 140,000 birds a day, whose meat is sold in Brazil and export markets. It would merge with JBS poultry unit JBS Aves and add about 10 percent to the unit's daily processing capacity of 1.34 million birds.
"The acquisition of Agroveneto complements JBS's business in the poultry sector in Brazil," the company's statement said.
JBS began poultry operations in Brazil for the first time this year when it leased the assets of Frangosul, controlled by French poultry producer Doux. It already has a large U.S. poultry operation through its subsidiary Pilgrim's Pride.