It signed an agreement on 19 June 2015 regarding "the purchase and sales of equity interests and other covenants with JBS SA", which included the terms and conditions for the sale of Moy Park.
The sale of the poultry business will enable Marfrig to increase its focus on seeking growth opportunities as part of its strategic plan ‘Focus to Win’, according to a statement from the firm. The sale of Moy Park, which is highly focused on retail, will give the firm a stronger focus on the foodservice sector, and greater flexibility in pursuing opportunities in this market, it said.
Marfrig has set out its priorities areas, which include: the expansion of its foodservice business at Keystone Foods in Asia and the US; growth in beef exports from Brazil to Asia and the US; and the strengthening of its financial position including the improvement of free cash flows.
At a strategic briefing by Marfrig in March this year, Janet McCollum, chief executive of Moy Park, told delegates that the business was keen to grow its poultry sales ahead of the market, and take advantage of the favourable global outlook for poultry, having increased net revenue by 13% in 2014.
Commenting on the acquisiton, McCollum said:
“Moy Park is a strong, growing and profitable company and has benefited greatly from being part of Marfrig Global Foods. We are very pleased and encouraged by this development which is great recognition for Moy Park.
“JBS is the second largest global food business and the largest poultry company in the world with a significant poultry presence outside of Europe. The Moy Park team, together with our dedicated farming partners, will continue to meet and exceed the needs of our customers and consumers throughout the UK, Ireland and mainland Europe providing innovative, top quality products underpinned by the highest standards of animal welfare.”