June 22, 2015

The world’s largest meatpacker, Brazil’s JBS SA, has agreed to acquire Moy Park, the British unit of rival Marfrig Global Foods SA for a net price of $1.5 billion. Margrig acquired Moy Park in 2008 for approximately $680 million.

Continuing its overseas expansion campaign, JBS, which is controlled by Brazil’s Batista family with a 41.1% stake, will pay $1.9 billion in cash for the unit, but will assume Moy Park’s debt which totals $476 million, helping Margrig reduce its current debt load of approximately $5 billion.  Since 2005, JBS, which began as a butcher shop, has made more than a dozen acquisitions both in Brazil and overseas, to become the world’s largest proteins producer with sites in 24 countries on five continents.

Being the largest poultry producer in Britain, the acquisition of Moy Park will give JBS access to markets across Europe including key markets in the United Kingdom and Scandinavia.

“This transaction represents an important step in JBS’ strategy to grow its portfolio of prepared and convenient products with high value added portfolio,” JBS’ investor relations officer Jeremiah O’Callaghan said in a statement.

This is not the first deal JBS has completed with Marfrig. In 2013, JBS agreed to buy the processed food manufacturer, Seara from Margrig, boosting JBS’ market share in Brazil.

The Moy Park acquisition is dependent upon gaining regulatory approvals, including from European Antitrust regulators.

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