Minerva Foods
Meat

Minerva negotiates purchase of Uruguayan meatpacker BPU

Nov, 22, 2022 Posted by Gabriel Malheiros

Week 202247

Minerva Foods is close to closing yet another acquisition abroad. The company signed an exclusivity agreement with the Japanese NH Foods to negotiate the purchase of Breeders & Packers Uruguay (BPU), an Uruguayan slaughterhouse with the capacity to slaughter around 1,000 head of cattle per day.

Minerva is conducting due diligence on the BPU, according to sources. The deal is expected to be completed by December 15, when the exclusivity period expires.

According to sources, the values have not yet been determined, but the deal is expected to be worth between US$ 35 million and US$ 45 million. Minerva’s purchase is advised by Rabobank.

NH Foods decided to sell the business at a time of downturn in the livestock cycle in Uruguay. Five years ago, the Japanese paid about $135 million for the BPU.

If the purchase is completed, Minerva will expand its slaughtering capacity in the country by 40%. Today, the company has three units in Uruguay, with a combined capacity to slaughter 2,500 cattle per day. Marfrig is the leader in meat production in the small South American nation.

By taking over the BPU, Minerva is betting on the turn of the cattle cycle in Uruguay, hoping for a greater supply of cattle in the coming years. In the most recent videoconference with analysts, the company had already signaled its belief in an upcoming situation improvement.

The rapprochement with NH Foods starts with the M&A in Uruguay but could develop into a global partnership, possibly involving the Japanese business branch in Australia. Nippon Ham owns the third-largest cattle slaughterhouse in the Oceania-based country.

Source: Valor Econ├┤mico

To read the full original article, please go to: https://valor.globo.com/agronegocios/noticia/2022/11/22/pipeline-minerva-negocia-compra-do-frigorifico-uruguaio-bpu.ghtml

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