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Marfrig announces the sale of Moy Park

In line with the “Focus to Win” strategy, the transaction aims to sharpen the company’s focus on the food service segment and on beef exports from Brazil

São Paulo, June 22, 2015 – Marfrig Global Foods has announced the sale of its entire Moy Park business unit to JBS. The sale of Moy Park enables Marfrig to focus more intensely on pursuing growth opportunities defined in its “Focus to Win” strategic plan by expanding the food service business of Keystone in both Asia and the United States, by increasing beef exports from Brazil, especially to Asia and the United States, and by strengthening its capital structure and increasing its free cash flows.

The value of Moy Park was fixed at approximately US$ 1.5 billion, broken down as follows: payment of US$ 1.19 billion in cash to Marfrig at the time of closing the deal; assumption of Moy Park’s net debt of 200 million pounds; variations in net debt above or below 200 million pounds as well as changes in working capital will be adjusted to the amount of US$ 1.19 billion at the time of signing the agreement based on a comparison of the balance sheets on the reference date and the sale date.

The transaction is subject to approval from competent authorities, including antitrust bodies in the European Union, and is expected to be signed by the end of 2015.

The proceeds from the sale will enable Marfrig to significantly advance the planned reduction in its financial leverage levels, while also substantially reducing the associated interest expenses.

Marfrig remains a globalized company after the transaction - 75% of the group’s revenues will be earned in currencies other than the Brazilian real, 59% of the consolidated revenue will continue to come from international operations and the company will still operate in 11 countries, with nearly 33,000 employees and 49 production units.