Brazilian meat producer JBS has completed the acquisition of European poultry company Moy Park for $1.5bn from Marfrig Global foods, following an approval from the European Union.
The deal, which was announced in June, required certain regulatory approvals for completion of takeover process.
As part of the deal, JBS paid Marfrig $1.2bn and takes charge of Moy Park's debt, which is about $293m. The sale proceeds will help Marfrig to accelerate the planned reduction in its debt levels and minimize the associated interest expenses.
Following the completion of transaction, Marfrig continue to operate as a globalised company with 75% of the company's revenues earned from international markets. The consolidated international revenues will account for 59% of Marfrig's earnings and the company will continue to operate in 11 countries with 49 production facilities and 33,000 employees.
JBS president Wesley Batista was quoted by AFP as saying that the deal will help the company to extend its product range and penetrate into European markets.
The sale of Moy Park will mean that Marfrig can now focus on growth opportunities with the expansion of its food service business of Keystone in both Asia and the US. Marfrig also intends to increase beef exports from Brazil to Asia and the US.
It also intends to increase cash flows and bolster its capital structure.
Based in Northern Ireland, Moy Park raises chickens and turkeys in the UK, Ireland, The Netherlands and France.
JBS, which is already considered as one of the largest meat processor in the world, expects to gain foothold in Europe with the acquisition of Moy Park. Currently, it has established markets in the US, Australia, and South America.
The firm over the last few years purchased Tyson's businesses in Mexico and Brazil, Marfrig's Seara unit in Brazil, and Frangosul, the Brazilian unit of French firm Doux.
