Marfrig acquires Argentinean Quickfood for USD 55 million and forms alliance with BRF in the Brazilian market
- Leader in Argentina’s beef by-products market, Quickfood was a subsidiary of the Brazilian BRF.
- Agreement between the companies also envisages partnership for the production and distribution of beef patties, meatballs and kibbeh produced in VÁRZEA GRANDE, Mato Grosso.
- With this transaction, Marfrig strengthens its position in the high value-added product market.
São Paulo, December 7, 2018 – Marfrig Global Foods (B3: MRFG3 and Level 1 ADR: MRTTY), one of the world's leading producers in the beef industry, has just informed the Securities and Exchange Commission of Brazil (CVM) of the acquisition – for USD 54,9 million – of 91.89% of the capital stock of QUICKFOOD in Argentina. Leader in the beef by-products market and owner of prominent brands in Argentina, Quickfood was under the control of BRF for the last seven years.
“With this acquisition, we are reinforcing one of our strategic pillars: focus on growth in value-added products and brands,” said Eduardo Miron, global CEO of Marfrig. “And we are doing this by acquiring a company renowned for operational excellence. We believe that this operation will create value for our stakeholders."
Quickfood has three plants in Argentina, in the cities of San Jorge, Baradero and Arroyo Seco. Together, these units have a daily processing capacity of 620 head of cattle and, in a month, process more than 6,000 tons of products such as beef patties, wieners, cold cuts and frozen vegetables. Among the company’s brands are Paty, synonymous with beef patties in Argentina, Good Mark and Barfy, other beef patties brands, Vienissima!, the leading brand of wieners, and Green Life, the frozen vegetables brand. In 2017, QUICKFOOD’s net sales amounted to USD352 million. The company has been listed on the Buenos Aires Stock Exchange (PATY) since 2002.
On the same occasion, Marfrig also announced a partnership with BRF, worth R$100 million, by which it will take over the production of beef patties, meatballs and kibbeh at the plant in VÁRZEA GRANDE, Mato Grosso– and the transfer of equipment and infrastructure. The unit has annual production capacity of 69,000 tons of beef patties.
The partnership guarantees Marfrig an agreement for supplying these products to BRF for five year. Apart from the partnership with BRF, the agreement allows Marfrig to once again supply products, such as beef patties, to global foodservice companies in Brazil and to adjust the estimated investment to a new beef patties plant in the country.
Both operations, Quickfood and VÁRZEA GRANDE, will be managed by Miguel Gularte, CEO of Marfrig’s South-American operation, and will be financed with part of the company’s cash. “We have a non-negotiable commitment to financial health,” said Miron. “With the acquisition of these companies, we saw an opportunity to grow, maintaining and focusing on a simple structure, without losing sight of this commitment."