Brazilian food company Vigor, a subsidiary of JBS, has entered into an agreement to acquire 50% stake in dairy cooperative Itambe for BRL410m ($208.3m).
Itambe, which is one of the leading dairy cooperatives in Brazil, sources milk from 31 individual members in the states of Minas Gerais, Goias and Sao Paulo. The cooperative processes more than 3 million tons of milk annually. It operates five facilities - four in Minas Gerais and one in Goiás as well as ten distribution centers.
The acquisition will allow Vigor to strengthen its presence in key markets such as Minas Gerais and Rio de Janeiro.
The transaction is subject to customary conditions, including the approval of the Administrative Council for Economic Defense (Cade).
Vigor, the holding company of investment firm J & F, also owns other businesses, including the beef processing firm JBS; Flora Produtos de Higiene e Limpeza, a manufacturer of cleaning and personal-hygiene products; and pulp and paper manufacturer Eldorado Celulose e Papel. It also specializes in UHT milk and milk derivatives including yogurt, cheese, butter, ice cream; fruit juices, pasta, sauce and vegetable fats and oils.
