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Marfrig and Brasil Foods in Asset Swap

22 March 2012, at 8:14am

BRAZIL - Marfrig and Brasil Foods (BRF) are carrying out the asset swap that was announced in a deal between the two companies last year.

Under the conditions of the exchange Brasil Foods together with Sadia and Sadia Alimentos will be transferring the trademarks and property rights to a number of specified plants.

These plants include eight distribution centres the pig slaughter plant at Carambeí together with the stock and contracts with producers to ensure that Marfrig can maintain the supply to customers.

Marfrig will also take over 64.57 per cent of the capital stock of Excelsior Alimentos SA, which is part of Sadia.

Marfrig will transfer to Brasil Foods its assets in Quickfood SA based in Argentina and pay an additional R$350 million (reals). Of this R$100 million will be paid between June and October this year.

The remaining R$250 million will be paid in 72 monthly installments, with interest at market rates.

Additionally, after the lease period, a further R$188 million will be transferred to exercise the option to buy the pork plant located in the City of Carambeí, leased to Marfrig by BRF, if that option is taken up by Marfrig.

With regard to Quickfood, Marfrig is forced to adopt all necessary measures to segregate the food processing activity, the object of the exchange, from the slaughterhouses activity, which will remain with Marfrig.

The exchanges are expected to be completed by 1 June this year.