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Monday, July 20, 2015
BRF finalizes sale of dairy division
Brazil-based meat, poultry and food company BRF in July finalized the sale of its dairy division to Lactalis do Brasil – Comércio. The transaction was valued at BRL2.1 billion (US$650 million).
The company’s intent to sell its dairy division was initially announced on September 3, 2015.
In selling its dairy division, BRF is expected to be able to concentrate more on its key product categories of broiler chicken, turkey and pork. One of the largest poultry producers in the world, BRF processes 1,831 birds annually, according to the WATTAgNet Top Poultry Companies Database.
According to a statement from Augusto Ribeiro Júnior, BRF chief financial and investor relations officer, the financial implications related to the transaction are being assessed by the company and will be recorded on its financial statements for the third quarter of the 2015 fiscal year.
The selling of its dairy division marks the second major transaction BRF has finalized in a month’s time. On June 3, the company announced it had officially formed a joint venture with Singapore Food Industries, known as SATS BRF Food, that will create a food distribution and meat processing business that offers branded products initially for the Singapore market and later for other parts of Southeast Asia.