Minerva Foods Completes Acquisition of Marfrig Assets in Brazil

Key Takeaways:

• Minerva Foods finalizes acquisition of Marfrig’s Brazilian assets, adding 13 cattle and sheep slaughter and deboning plants and a distribution center.
• This acquisition expands Minerva’s slaughter capacity in Brazil to 22,336 head per day across 21 plants, with further operations in Argentina, Chile, and Australia.
• Minerva Foods strengthens its position as South America’s second-largest beef producer, with strategic exposure to major markets such as North America, Europe, the Middle East, and Asia.
• The transaction represents a total investment of approximately $1.53 billion USD.

Acquisition Finalized Following Antitrust Approval

Minerva Foods (Minerva S.A. – B3: BEEF3 | OTC – Nasdaq International: MRVSY), one of South America’s largest exporters of fresh beef and beef derivatives, announced the completion of its acquisition of 13 slaughter and deboning plants and a distribution center in Brazil from Marfrig, following approval by Brazil’s antitrust authority, CADE. The acquisition, which was initially announced in August last year, reinforces Minerva’s position in the global beef market and represents a strategic expansion of its production capabilities across South America.

Expanded Production Capacity and Global Reach

With this acquisition, Minerva Foods has increased its slaughter capacity in Brazil to 22,336 head per day across 21 facilities. Additionally, the company is integrating a cattle slaughter and deboning plant in Argentina and a lamb processing plant in Chile as part of the Marfrig deal, with plans to achieve daily slaughter capacities of 5,978 head in Argentina and 25,716 head in lamb operations across Australia and Chile.

Minerva Foods’ expanded footprint allows the company to better serve international customers and capture opportunities across global markets. With the new assets, Minerva becomes the leading supplier of beef to China and holds the largest number of South American processing plants authorized for export to that market.

Enhancing Operational Efficiency and Market Position

The expanded operations further strengthen Minerva Foods’ ability to meet rising global beef demand by leveraging South America’s competitive advantages in beef production, including favorable climate conditions and efficient production cycles. According to Fernando Queiroz, CEO of Minerva Foods, “For more than 30 years, we have built a strong track record in the animal protein market, creating connections between people, food, and nature. We are pleased to take another major step in our global positioning and excited to strengthen our team with the new members joining through this integration.”

This acquisition allows Minerva to maximize operational efficiency across its processing plants, reducing risks and creating synergies in both production and distribution. By integrating facilities in Brazil, Argentina, Chile, and potentially Uruguay, Minerva also enhances its operational flexibility, allowing for better coordination of beef production cycles across countries and creating a more robust supply chain.