Brazi-based company intends to expand food processing plant in Saudi Arabia
Brazil-based meat and poultry company BRF has finalized the acquisition of Joody Al Sharqiya Food Production Factory, a company which operates a food processing plant in Dammam, Saudi Arabia.
BRF first announced its intent to acquire the company in May 2020. According to an announcement to the market, issued on January 18 and posted on the BRF Investor Relations webpage, the transaction has closed, with BRF taking ownership of 100% of the company’s shares for an estimated total cost of SAR29.7 million (US$8 million). The purchase price is subject to post-closing adjustments.
Joody Al Sharqiya Food Production Factory will be integrated into BRF’s Badi Limited subsidiary.
The acquisition represents a reinforcement of BRF’s presence in the Saudi market, and is in line with the company’s strategy of establishing local production and expansion of its high value-added products portfolio, according to the announcement.
Among the products produced by Joody Al Sharqiya are breaded and marinated cuts, hamburgers and other products.
Newly acquired plant to be expanded With the conclusion of the acquisition, BRF will start to implement a project to expand the Joody Al Sharqiya plant’s processing capacity from 3,600 tons per year to 18,000 tons per year, according to the accouncement. The company intends to invest an addition US$7.2 million in the expansion project.
BRF, according to the WATTPoultry.com Top Companies Database, is the second-largest poultry producer in Brazil and the third-largest in the world, having slaughtered 1.55 billion broilers in 2019. In addition to being a leading broiler producer, the company is also a major producer of turkey, pork and beef products. BRF is also one of the largest compound feed manufacturers in the world.
BRF, which formed with the merging of Sadia and Perdigao, operates on a global scale, with its products reaching in excess of 110 countries.
Roy Graber is a senior reporter at WATT Global Media. Contact Graber via email at [email protected].
Source : wattagnet.com