Marfrig has bought 51 per cent of Zenda for about US$49.5 million. The acquisition value will be adjusted after the due diligence process.

The agreement to acquire more than half of the shares also allows for the acquisition of the remaining shares according to the operational performance of the business.

The Group, which is headquartered in Uruguay, has average daily capacity of up to 7,000 units of finished and cut leather, and also has industrial plants located in Argentina, Mexico, United States, Germany, South Africa, Chile, Hong Kong and China.

The management (including technical, operational and commercial teams) will remain in Zenda following the association with Marfrig Group in order to improve the exchange of best practices and economies of scale with the other Marfrig’s operational divisions.

Marfrig said it expects to obtain significant benefits from this transaction through synergies captured by the capacity expansion and by the higher value added to its leather operations in Uruguay and Argentina.

Banco do Brasil worked as an exclusive advisor for Marfrig in the deal.

The agreement with the Martins Group creates a five-year partnership combining the logistics and distribution channels of both groups to give a better service to their retail customers – restaurants, butchers and supermarkets.

The agreement could be extended for another equal period.

This initiative aims to increase distribution and widening the reach of both Marfrig Group and Grupo Martins products, offering services and solutions to their retail customers and providing more comfort and convenience for all consumers regarding the product portfolio from both companies.

This partnership is in line with Marfrig´s strategy to expand its operations in the retail and food service segments, expanding its geographical presence in Brazil, diversifying its portfolio with the goods sold by the Grupo Martins and by reaching new consumers with products from its beef, poultry, pork and lamb platforms operation in Brazil and abroad.

Marfrig has also reached an agreement with the meatpackers of the Margen Group and Mercosul S/A to lease 11 meat-packing plants with combined slaughter capacity of 8,800 head of cattle a day and 1,700 tonnes of prepared products a month.

The leased units are in the Brazilian states of Goiás, Pará, Rondônia, Mato Grosso do Sul, Paraná and Rio Grande do Sul. The conclusion of the lease agreement is subject to a due diligence.

The transaction will expand the Company’s cattle slaughter capacity to 22,350 head a day in Brazil and the total cattle slaughter capacity of Marfrig Alimentos S.A. to 30,150 head a day, further strengthening its positioning in the sector and maintaining the diversification of its production among various animal proteins. Marfrig considers the transaction strategic during a time of gradual growth in cattle supplies and improvement in the Brazilian and international beef markets.

Rosenberg Partners worked as an exclusive advisor for Marfrig in the Frigorífico Mercosul S.A. deal.

Marfrig has also reaffirmed its commitment to not acquire cattle from farms on the banned list published by Brazil's environmental protection agency IBAMA, acting proactively against producers that do not comply with applicable legislation by immediately removing them from its list of beef cattle suppliers.

The company added that it also adopts practices in line with all applicable environmental legislation and labor laws and is a signatory to the Brazilian Pact to Eradicate Slave Labour.