BRF concludes Hercosul and Moginana acquisitions

Brazil-based company will pay BRL1.35 billion for the assets.

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(Studio-pixeltext, BigStock.com)

Brazil-based meat, poultry and animal feed producer BRF has taken steps forward in its efforts to become a major pet food producer, as its acquisitions of Hercosul and Moginana Alimentos have been finalized.

The company announced that both transactions have been finalized in separate securities filings, posted on the BRF Investor Relations webpage.

In one filing, published on September 1, BRF stated that it had concluded the acquisition of Paraguassu Participações S.A. and Affinity Petcare Brasil Participações Ltda., holders of 100% of the capital stock of pet food company Moginana Alimentos. The newly acquired assets will become part of the BRF Pet S.A. subsidiary.

In another earlier securities filing, BRF stated that it had met all of the conditions to acquire Hercosul.

BRF stated that it will pay BRL1.35 billion (US$255 million) for Hercosul and Mogiana Alimentos, but that exact price “is still subject to the usual adjustments in operations of this nature.”

As a result of the closing of the transactions, BRF said it “will promote the integration of the new pet food operations, boosting its commercial strategy focused on the specialized distribution channel, adding strong brands and bringing important synergy gains, such as the purchase of grains and co-products for the production of animal feed.”

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.

Mogiana’s product portfolio includes superpremium Guabi Natural, Gran Plus in the high premium segment, Faro in the premium segment, in addition to the Herói and Cat Meal brands in the standard segment. The company operates with a strong presence in the southeast region, in addition to exporting products to countries in the Caribbean, Europe and South America. For this purpose, the company has two production units in Campinas and Bastos, Brazil.

BRF ranks as the second largest feed producer in Brazil and the eighth largest in the world. BRF is also Brazil’s second largest poultry producer. JBS ranks first among Brazilian companies in both categories.

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