Marfrig (Brazil) acquires Seara from Cargill

Brazilian meat processor, Marfrig, is to buy the entire business of Seara Alimentos Ltda - the poultry, pork and processed meat operation, including subsidiaries in Europe and Asia, and the brand, Seara, in Brazil and abroad from Cargill Inc.
The deal includes 12 plants in the processed value-added and processed poultry and pork sectors and a port terminal, with net sales of about US$ 1.7 billion. The businesses to be acquired by OSI are in:

• 7 poultry plants (1.2 million birds per day) and 2 pig plants (5,800 head/day)
• 3 manufacturing plants for processed value-added products (17,500 tonnes/month)
• Private port terminal for refrigerated cargo and dry cargoes at Braskarne in Itajai (SC)
• 'Seara' and other brands in this segment
• Distribution operations and marketing offices in UK, Japan and Singapore
• 9 feed mills
• 6 integrated poultry and pork farms with around 3,000 farmers

The agreement is initially valued at $706.2 million in cash and $193.8 million in assumption of debt. The values could be adjusted during the process of due diligence up to the closing of the deal.
It is expected that the deal will be completed in the fourth quarter of 2009, after its submission to the applicable regulatory agencies in Brazil and abroad and other legal acts required.