Brazilian protein giant JBS has entered the egg production sector through an investment agreement to acquire a stake in Mantiqueira Alimentos.
JBS said in a statement it is taking a 50% interest in Mantiqueira, with control of the business shared with its founder Leandro Pinto.
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In a separate filing with the US Securities and Exchange Commission, JBS said: “The value of the investment will be established according to the rules common to this type of business, based on an enterprise value for 100% of Mantiqueira” – equating to $1.9bn reais ($321.3m).
Gilberto Tomazoni, the group CEO of JBS, said in the statement: “This investment is in line with our long-term strategy, which includes diversifying our portfolio by entering new protein segments and investing in value-added branded businesses.
“The consumption of eggs in the world has shown consistent growth. It is an affordable, versatile and healthy protein, which reinforces our purpose of feeding the world.”
Mantiqueira produces four billion table eggs annually, and since 2020, has focused on free-range egg production, according to JBS.
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By GlobalDataThe company has operations in six Brazilian states, employs over 3,000 people and has a capacity of 17.5 million laying and rearing birds.
It sells products under the Happy Eggs and Fazenda da Toca brands and exports eggs to South America, Asia, Africa and the Middle East.
Pinto added in the statement: “We are leaders in Brazil and, with the arrival of JBS, we will have more access to market opportunities, in addition to obtaining the necessary knowledge to become a relevant competitor outside the country.
“This union is a milestone in our strategic planning, which has always sought, in addition to organic expansion, to enter new markets.”
The deal’s closing is subject to receipt of customary conditions and regulatory approvals.
In Q3 2024, JBSs net income rose to $692.9m from $117.3m in the same period last year. Net revenue increased by 6.4% to $19.92bn.
In other investments, JBS announced an investment of $2.5bn in November to establish six meat-processing facilities in Nigeria.
The company signed a memorandum of understanding with the government in Nigeria to build three plants for poultry, two for beef and one for pork.
