terça-feira, 15 de maio, 2018

Global Foods marfrig acquires the controlling interest of American national beef

The Marfrig Global Foods, one of the largest animal protein companies in the world, announces today that it has reached an agreement for the acquisition of 51% of the shares of National Beef Packing Company, LLC, fourth-largest processor of beef from the United States. The Marfrig will pay $969 million for participating, and completed the transaction, will become the second largest processor of beef in the world, with a global platform of production and a consolidated turnover of 43 billion reais. Founded in 1992, the National Beef won 24.3 billion reais (7.3 billion dollars) last year and is, since 2011, controlled by American investment holding company Leucadia National Corporation, which, at the time, now holds 79% stake. The company has slaughter capacity of 12 000 heads a day, is headquartered in Kansas City, in the State of Missouri, and has two processing units in Dodge City and Liberal, Kansas, which account for about 13% of the total capacity of slaughter of the American market. The National Beef is now more efficient and one of the most profitable companies in the United States. After the operation completes, the Leucadia will transfer ownership to the Marfrig and will remain as minority shareholders of the company, with a share of 31% of the total capital. The US Premium Beef, American producers association, will take 15 percent and other shareholders with the remaining 3%. Both Leucadia as other investors have committed to keeping their shares of National Beef for a minimum period of five years. The transaction valued National Beef in 2.3 billion dollars, including debt – so the amount paid by Marfrig equals a multiple of EV/Ebitda LTM transaction (Enterprise value/adjusted Ebitda) of 4.4 times. With the acquisition of National Beef, the two objectives in Marfrig reaches your strategic plan. First, consolidates your strength in the beef segment, the company's origin. One of the leaders of the American market, the National Beef exports to 40 countries, including Japan and South Korea, currently closed markets to brazilian exports. In 2017, Marfrig presented a adjusted Ebitda of 1.7 billion reais. With the National Beef, the pro forma Ebitda becomes of 3.4 billion reais. "The acquisition of National Beef is the materialization of a unique opportunity," says Martín Secco, Marfrig CEO. "With the transaction, we have operations in the two largest markets of beef in the world, there will be extremely sophisticated consuming countries and were able to grow while maintaining strict financial discipline." The second aim achieved with transaction is the improvement in the indicators of marfrig‟s leverage, which will consolidate in your 100% balance of the results of the National Beef. Last year, the total debt of 4, 55vezes your Marfrig represented Ebitda. With the acquisition, the indicator drops to 3.35 times. The transaction will be fully financed by a loan from the Bank Rabobank. Other measures aimed at reducing the leverage of Marfrig follow ongoing and include the decision to sell the Keystone Foods, one of the leaders on the market of processed meats and supplies some of the largest networks of fastfood, foodservice, retail and convenience of world. The sale of Keystone, along with the transaction of the National Beef, you should make your goal to leverage Marfrig reach of 2.5 times by the end of 2018. "The acquisition of National Beef reflects our strategy of sustainable growth", says Marcos Molina, President of the Board of Directors of Marfrig Global Foods. "From now on, we can turn on brazilian company in the sector with the best financial health, translated in the lower levels of leverage." The top executives of the National Beef will remain at the company, which is under the management of Tim Klein, current CEO and Chairman. The Board of Directors of the National Beef shall be composed of nine members, five of which will be indicated by Marfrig, two by Leucadia and two by other minority shareholders. "We are happy to remain a relevant shareholder of National Beef and be Marfrig partners and management team in the ongoing development of the company", says Rich Handler and Brian Friedman, respectively CEO and President of Leucadia butt Securities USES was the financial advisor of the purchase transaction of Marfrig share control of National Beef. The law firm Linklaters served as international Advisor. In Brazil, the legal advice was made by Lefosse Advogados.
Food Service News - 09/05/2018 Noticia traduzida automaticamente
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