Brazilian food company Brasil Foods (BRF) has acquired 33% stake in Avex, Argentina' s leading poultry producer and exporter.
Through this deal, the company has also acquired Argentina's Danica group. The transaction is expected to be completed within 90 days. BRF plans to invest $40.5m in the newly acquired companies.
This deal will enable BRF to integrate its business in Argentina, as well as to gain synergies for integrated business.
Avex, located in Rio Cuarto, Cordoba, produces whole, cut, chilled and frozen chicken. It reported sales of $66.8m in 2010. Avex is the leading player in the domestic poultry market, with a market share of 4% in Argentina.
The Danica group, headquartered in Buenos Aires, has a broad distribution structure for dry and chilled/frozen products, and is a leader in margarines and sauces segment. The company's brands include Danica, Manterina, Vegetalia, Danifesta and Primor.
