Marfrig Global Foods acquires majority stake in US-based National Beef Packing Company

Marfrig Global Foods SA has agreed to buy a majority stake in National Beef Packing Co., in a deal worth $969m.

The Brazilian firm said the acquisition will make it the world’s second-largest beef producer, with consolidated sales of US$13bn.

Under the deal, Marfrig, formerly known as Marfrig Alimentos SA will buy 48% of National Beef from Leucadia National Corp. and 3% from other shareholders. 

Once the transaction closes, Leucadia will remain a minority shareholder in National Beef, with a 31% interest.

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“The acquisition of National Beef is a unique opportunity,” said Marfrig CEO Martín Secco. 

“With the transaction, we will have operations in the two largest beef markets in the world, we will reach extremely sophisticated consumer countries and we can grow by maintaining strict financial discipline.”

Under the deal, Marfrig will boost its total slaughter capacity and will also gain access to the Japanese and South Korean markets, which are currently closed to beef exports from Brazil. 

Headquartered in Kansas City, USA, National Beef currently has a slaughtering capacity of around 12,000 heads of cattle per day.

It owns two slaughterhouses and accounts for approximately 13% of the US cattle slaughtering capacity. 

In a statement, Marfrig Global Foods announced that key executives of National Beef, including the company’s CEO Tim Klein, will remain at the company. 

Marfrig Global Foods also announced that it has decided to sell Keystone Foods, a global food services company that supplies meat products to leading consumer brands. 

“The acquisition of National Beef reflects our sustainable growth strategy,” says Marcos Molina, chairman of the Board of Directors of Marfrig Global Foods. 

“From now on, we have become the Brazilian company of the sector with the best financial health, proved into the lowest rates of leverage.”