SAO PAULO (Reuters) – Minerva said late on Thursday it had struck a deal to acquire sheep meat processor Australian Lamb Company for about $260 million.
The meatpacker will make the purchase through a joint venture formed between Minerva Foods Australia (65%) and the Saudi fund Salic (35%).
According to a material fact, after the agreement, Minerva will hold about 15% of the lamb and sheep market in Australia, where it already owns Shark Lake and the Great Eastern Abattoir.
“We believe that with the consolidation of our operations in Australia – and with investments in improving facilities and maximizing operational and commercial structures – it will bring significant synergy in the coming months”, said the company, without providing further details on the cost reduction.
The Australian Lamb Company has a slaughtering capacity of 3.78 million animals a year and has two processing plants in the state of Victoria, Minerva noted, adding that exports account for 93% of its sales.
The Brazilian company expects the business to improve its penetration in niche markets and expand its portfolio of products with greater added value.
Valor Econômico newspaper anticipated the deal on Thursday, citing sources familiar with the matter.
(Reporting by Peter Frontini and Gabriel Araujo)
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