JBS Aves Acquires Brasil Food Farm and Plant09 May 2013
BRAZIL - Brasil Foods (BRF) has sold to JBS Aves its pork processing plant and poultry farms at the Ana Rech Industrial Unit located in the state of Rio Grande do Sul.
Brasil Foods S.A. (BRF) and JBS S.A., through its subsidiary, JBS Aves Ltda, wishes to inform the market and its shareholders that they have signed an Agreement of Sale with Suspensive Conditions and Other Covenants as follows:
Once the Suspensive Conditions have been verified, BRF undertakes to sell and JBS undertakes to acquire the Ana Rech Industrial Unit located in the state of Rio Grande do Sul, (pork processing plant and poultry farms), the Biological Assets and the Pending Real Estate denominated Granja André da Rocha, situated in the municipality of Nova Prata, state of Rio Grande do Sul.
JBS shall pay to BRF the total amount of 200 million reais (BRR) for the Total Assets, the said amount to be allocated as follows:
- BRR120 million for the Ana Rech Industrial Unit and the Pending Real Estate; and
- BRR80 million for the Biological Assets, equivalent to approximately 491,000 hogs as of this date.
- The Total Price shall be paid in 50 monthly and consecutive installments, each installment amounting to BRR4 million. The first installment shall expire on the date falling six months after the signature date of the definitive agreements of sale of the Ana Rech Industrial Unit and the Granja André da Rocha. Interest shall be added to the installments calculated according to the variation of the DI (Interbank Deposit) Rate on a daily pro-rata basis from the signature date of this Agreement to the date of the effective payment.
The conclusion of the operation is contingent on the implementation of certain suspensive conditions, among which the express authorisation of the Brazilian Anti-Trust Authorities - CADE. The companies shall keep the market notified on each new stage of this transaction.
ThePoultrySite News Desk