Sao Paulo-based beef producer Marfrig Alimentos to sell its distribution unit for US$400M to Illinois-based Martin-Brower, to be completed in Q4; CEO says proceeds will reinforce cash position

Lorena Madrigal

Lorena Madrigal

Sep 21, 2011 – Industry Intelligence

LOS ANGELES , September 21, 2011 () – Brazil’s Marfrig Alimentos SA is selling its distribution unit to Martin-Brower Co. for US$400 million, Bloomberg reported Sept. 19.

The distribution unit consists of 29 centers that serve McDonald’s Corp. in the U.S., Europe, Asia, and Oceania.

CEO Marcos Molina said the company wanted to focus on its meat business and might use the sale proceeds to cut debt and reinforce its cash position.

The company will not use the proceeds for acquisitions, Molina said.

Alan Alanis, an analyst with JPMorgan Chase & Co. said the firm is concerned the proceeds will be used to acquire assets put on sale by poultry exporter Brasil Foods SA in July. Alanis gave Marfrig’s stock a neutral rating.

Four of Marfrig’s 29 beef plants, about 13% of total capacity, remain close as livestock numbers remain low.

The primary source of this article is Bloomberg, New York, New York, on Sept. 19, 2011.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.


About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.