Brazilian beef firm JBS has entered into an agreement to acquire local poultry processor Agroveneto.
The deal, announced today (5 November), valued Agroveneto at BRL$128m (US$62.9m), BRL10m of which is payable in JBS shares, the balance being debt assumption.
The acquisition will be the second move from JBS into the poultry sector this year after leasing the assets of Frangosul, controlled by French poultry producer Doux, early in the year.
The acquisition, JBS said, complements its operations in the poultry segment in Brazil. The Agroveneto business will be incorporated into JBS Aves, which now comprises four production facilities, with a daily capacity to process 1.34m birds.
The deal is subject to approval by the competition authorities and by the company's board of directors.
Agroveneto specialises in the production of chicken products and operates out of Nova Veneza in the southern Brazilian state of Santa Catarina. The firm produces and sells products both domestically and to export markets, mainly Asia, Europe and the Middle East.
