Brazil’s Marfrig Global Foods has reached an agreement to acquire 51 percent of National Beef Packing Company for $969 million, becoming the world’s second largest beef processor, the company announced in a statement early Monday.
Marfrig estimates its revenue will reach BRL43 billion ($13 billion) and EBITDA (earnings before interest, taxes, depreciation and amortization) will total BRL3.4 billion ($1 billion) annually after the acquisition is completed.
The company’s slaughter capacity will total 8.3 million cattle per year with the combined operations. Marfrig will also have access to the Japanese and South Korean markets, which are currently closed to Brazilian beef.
Leucadia National Corporation will transfer National Beef’s control to Marfrig but will remain as a minority shareholder of the company, with a 31 percent stake. US Premium Beef will hold 15 percent and other shareholders will hold the remaining 3 percent. The minority shareholders have committed to maintain their shares in National Beef for a minimum of five years.
The acquisition of National Beef is 100 percent financed by Rabobank.