Brazilian meat packer Marfrig Global Foods has agreed to sell three meat packing and a livestock confinement unit in Argentina to China-based Foresun Group’s subsidiary for $75m.
As part of the agreement, Black Bamboo Enterprises which is controlled by Foresun will take over three meatpacking units, which are located in the towns of Hughes, Vivoratá and Unquillo.
Black Bamboo will pay $34m in cash and pay the remainder amount over the next 12 months. Mafrig will continue to operate a meat packing unit in San Luis province in Argentina.
Last year, Mafrig sold its entire Moy Park business unit to JBS.
The sale was intended to help Mafrig improve focus on growth opportunities as defined by its "Focus to Win" strategic plan. The plan included expansion of food service business of Keystone in both Asia and the US, by increasing beef exports from Brazil, especially to Asia and the US, and by strengthening its capital structure and increasing its free cash flows.
As part of the deal, JBS paid Marfrig $1.2bn and also took charge of Moy Park's debt, which is about $293m. The sale proceeds aided Marfrig to accelerate the planned reduction in its debt levels and minimize the associated interest expenses.
