Unilever announced this Monday (2) the acquisition of Brazilian brand Mãe Terra. The company specializes in natural and organic produce and was established in 1979. The acquisition cost was not disclosed.
Mãe Terra, which produces organig cereals, cookies and other snacks, has been growing 30 YoY and its acquisition is an attempt from the global giant to become relevant in the organic market in Brazil.
The acquisition is still pending standard regulatory approvals
JBS S.A. (BM&FBOVESPA: JBSS3, OTCQX: JBSAY, “JBS” or “Company”) communicates to its shareholders and to the Market in general that Fitch Ratings (“Fitch”), a rating agency, upgraded JBS S.A. from BB to BB+, with stable outlook.
According to the Fitch report, “the upgrade reflects JBS S.A.’s strong products and geographical diversification, as well as the successful integration of several acquired businesses over the past few years. It also factors in the strengthening of its business profile due to the recent acquisitions in the U.S., Europe and Australia. (…) Further, Fitch expects the company to report strong performance in all of its divisions in 2015 and 2016.”
The report also emphasized that “JBS S.A.’s ratings are supported by its strong business profile as the world’s largest beef and leather producer and its overall product diversification into poultry, beef, pork and to prepared foods.”
This upgrade underlines the Company’s commitment to operational excellence, free cash flow generation, financial discipline and value creation to its shareholders.
JBS S.A. (“JBS” or “Company” – BM&FBOVESPA: JBSS3; OTCQX: JBSAY), in continuity to the announcement made in the Material Fact of June 21st, 2015, communicates to its shareholders and to the market in general, pursuant to CVM Instructions No. 10 and 358 of January 3rd 2002, as amended, that it concluded today the acquisition of 100% of the ownership of Moy Park Holdings Europe Ltd. (“Moy Park”).
The Company obtained the necessary regulatory approvals from the competent antitrust authorities, including the European Commission, to conclude the transaction without restrictions.
The closing value was composed by: (i) payment of US$1,212.6 million to Marfrig; and (ii) Moy Park net debt assumed by JBS in the total amount of US$293 million which includes Notes totaling GBP300 million due in 2021. The value paid is slightly higher than the amount of US$1,190 million previously announced due to variation in working capital and in net debt in the period between the signing of the agreement and the closing of the transaction, as originally agreed by the parties.
Moy Park has a history of more than 70 years, being a leader in high value added categories and a reference in the development and innovation of food products. With revenue of R$5.5 billion in 2014, of which 51% came from prepared further processed products, Moy Park customer base includes the main retailers and foodservice chains in UK and Continental Europe.
“This transaction is in line with our global strategy in expanding our portfolio of prepared and convenient food products. In addition, we see potential to expand our customer base in Europe, with a vertically integrated production, with innovation and strong brands”, stated Wesley Batista, Global CEO of JBS.
JBS S.A. (BM&FBOVESPA: JBSS3, OTCQX: JBSAY, “JBS” or “Company”) communicates to its shareholders and to the market in general, pursuant to CVM Instruction 358 of January 3, 2002, as amended, that on August 18, 2015, through its indirectly controlled subsidiary, JBS USA, LLC, it has successfully syndicated to the market US$1.2 billion aggregate principal amount of borrowings in the form of incremental term loans to JBS USA, LLC’s existing credit agreement (the “Incremental Term Loans”). The Incremental Term Loans will have a final maturity of seven years from the date of the Cargill Acquisition (as defined below) and bear interest at a rate equal to the LIBOR rate plus 3.0% (with a minimum LIBOR rate of 1.0%).
The proceeds from the Incremental Term Loans will be used, together with cash on hand, to pay the consideration for the previously announced acquisition of certain assets, properties, and rights of Cargill Meats ownership in Cargill Pork LLC (the “Cargill Acquisition”). The consummation of the Cargill Acquisition is subject to customary closing conditions, including receipt of requisite antitrust approvals.
The joint bookrunners for the financing were Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Pierce, Fenner & Smith Incorporated and Rabobank, New York branch.
BR Foods owns three very strong brands in the food market in Brazil: Perdigão, Sadia and Batavo. With more than 55,000 employees, it is one the largest Brazilian processed food companies. Its international operations reach more than 140 countries. The firm sells over 3,000 products both domestically and abroad, with a focus on the sale of processed food products, poultry, pork, beef, and dairy products.
Sadia and Perdigão are in the processed meat industry and used to be the two major players in the market until they merged in 2008, creating Brazil Foods. Batavo is the leading brand in dairy products in Brazil.
In a scenario where the middle-class is growing quickly in Brazil, BR Foods is well positioned to take advantage of this growing demand.
Also, BR Foods brands should allow it to pass to the consumers the rising costs from agricultural commodities, thus providing a nice inflation hedge.
Below is the full list of products BR Foods sell in Brazil and abroad (click the images to enlarge):
Easy Brazil Investing Rating
Brasil Food’s competitive advantage is built on its brands, distribution network and scale. All these factors along with the exposure to fast-growing markets, grant BRFS the 5 star EBI Rating.
BRF-Brasil Foods S.A.