BRF has struck a deal to acquire a processed foods factory in China from fellow meat major OSI Group.
The facility, which is owned by Henan Best Foods, a subsidiary of US-based OSI Group, is being acquired for $43m (248.5m reais).
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For BRF, the deal marks “the beginning of industrial operations” in China, where it already has a commercial presence.
Built in 2013, the factory operates two food processing lines with an annual capacity of approximately 30,000t.
BRF, which owns the Sadia, Perdigão and Qualy brands, plans to invest approximately $36m, for expansion to two additional lines, which would increase production to 60,000t per year.
That project is expected to create around 850 new jobs, the company noted.
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By GlobalDataIn a statement, BRF said: “The acquisition is in line with the company’s strategy of expanding its global presence by diversifying its footprint and strengthening BRF’s competitiveness by advancing its offer of value-added products.”
BRF expects the deal to enable it to “respond more effectively to regional demands” and provide “direct access to the Chinese market.”
The completion of the deal is contingent upon fulfilling conditions that include regulatory approvals and a restructuring of the factory’s assets, the company noted.
In October, BRF purchased a 26% stake in Saudi Arabia’s Addoha Poultry Company for $84.3m through a joint venture.
BRF’s international segment has shown growth, posting an EBITDA of 1.6bn reais in the third quarter of 2024, with a 22.2% margin, marking a 548.5% increase from the comparable quarter in 2023.
The increase was driven by higher sales of processed products and a recovery in the price of pork cuts
BRF reported a net profit of 1.1bn reais in the third quarter, versus of a net loss of 262m reais in the corresponding period the year previous.
Net revenues during the three months under review increased by 12.4% to 15.5bn reais from 13.8bn reais during the same period in 2023.
