Brazil-headquartered meat major BRF has signed a binding agreement to acquire a 26% stake in Saudi Arabia-based Addoha Poultry Co.

The deal, struck through the BRF Arabia joint venture with the Halal Products Development Co. (HPDC), is aimed at bolstering the meat packer’s “operations and portfolio in the Middle East”.

BRF said the transaction value is SR316.2m ($84.3m) and the deal is subject to regulatory approval and other customary conditions.

The company has been operating in Saudi Arabia for five decades, and with this transaction, it expects to become “one of the main partners of Saudi Arabia in its food-security agenda”.

BRF Arabia is 70%-owned by BRF and 30% by HPDC, a subsidiary of the Public Investment Fund of Saudi Arabia (PIF).

BRF said in a statement: “A shareholders’ agreement will be signed between BRF Arabia and the current shareholders of Addoha, ensuring effective participation in the management of the company and allowing the know-how of BRF and HPDC to contribute to the maximisation of synergies between the entities.”

For Q2 2024, the Brazilian meat major posted net revenues of 14.93bn reais ($2.5bn) compared to 12.20bn reais in the same period of 2023, a rise of 22.3%.

Net income was 1.09bn reais against a net loss of 1.33bn reais in Q2 2023.

Operating income was 1.72bn reais compared to an operating loss of 413m reais in the same period of 2023.

Recently, Marfrig increased its holdings in BRF, taking its stake in the fellow Brazilian meat supplier to more than 50%.

In November last year, BRF scrapped its plan to sell its pet-food division, more than eight months after initially announcing the sale.