In securities filings from June 18, Brazilian company BRF announced it plans to acquire pet food company Hercosul. BRF is one of the world’s top poultry, compound feed and other food producers. BRF executives said the company aims to become one of Brazil's top pet food companies by 2025. This acquisition is part of that plan as well as a diversification of BRF’s revenue stream.
In the documents, BRF executives wrote that the acquisition was "an effective step to becoming one of the largest and most relevant players in the Brazilian pet food market by 2025. It accelerates the development of its production capacity, logistics, brands and innovation in the pet food segment, in addition to boosting business in the specialized distribution channel. Considering the closing of the Transaction, BRF will become one of the largest players, with a market share of approximately 4%, according to estimates based on data provided by ABINPET (Brazilian Association of the Pet Products Industry)."
The twenty-year-old Hercosul Group is headquartered in Brazil. Hercosul produces and distributes dry and wet dog and cat foods, with brands such as Biofresh, Three Dogs, Three Cats, Primocão, Primogato, Apolo and Átila.
More about BRF
According to WATTPoutry’s World’s Top Companies directories, BRF, formerly Brasil Foods, is one of the largest poultry producers in the world, which was created by the association between Sadia and Perdigao. BRF produces Cobb and Ross broilers, as well as 37 million Nicholas turkeys annually. BRF is one of the biggest compound feed manufacturers in the world. BRF operates on an international scale, with its products reaching more than 110 countries.
2020 (July): A court in the European Union dismisses the case brought by BRF about a 2018 decision to ban imports of its products into the EU due to public health concerns.
2020 (May): BRF, through its subsidiary Badi Limited, signs with Hungry Bunny Limited and other companies, a share purchase agreement for the purchase of Joody Al Sharqiya Food Production Factory, a food processing company in Dammam, Saudi Arabia.
2020: By the end of the year, all of BRF's integrated producers will use an application called “Plataforma Digital Agro” to strengthen communication. Information such as the weight of birds, flock status, monitoring of animal health and slaughter forecast, feed schedule and remuneration forecasts can be accessed in real time.
2017 (March): BRF plants targeted by police in food corruption probe. The firm, as well as several smaller rivals, are suspected by Brazilian authorities of bribing health officials to allow unsafe meat to be exported overseas. BRF and JBS employees are accused of paying inspectors, as well as politicians, to overlook unsanitary conditions and potentially contaminated or rotten meat.
