Apr 02, 2010
Brazil Foods Plans Aggressive Acquisitions Outside Of Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazil Foods, the largest domestic processor of poultry and swine in Brazil, announced an aggressive plan to grow the company by 10% per year for the next five years through acquisitions, primarily outside of Brazil. The company, which was created in 2009 through the merger of Sadia and Perdigao, still maintains separate operations, but final approval of the merger is expected from the government sometime during the first half of 2010.
According to Nildemar Secohes, co-president of Brazil Foods, the combined companies have already purchased many processing facilities in Brazil and there still might be opportunities in one segment or the other, but they feel that the biggest opportunities exist outside of Brazil. The company is particularly interested in purchasing chicken processing operations. The operations they wish to purchase don't necessarily need to process Brazilian poultry. By the end of 2010, the company is expected to finalize its five-year financing plans.
It appears that Brazil Foods is attempting to following in the footsteps of JBS SA, the Brazilian beef-processing giant that has many beef-processing plants in South America and recently purchased Pilgrim's Pride Corp. and Swift & Company in the United States.