JBS Foods confirms Brazilian poultry acquisition

16-Jul-2014 - Last updated on 17-Jul-2014 at 10:07 GMT

JBS is hoping the acquisition will aid progress in its overseas strategy

JBS Foods has signed a deal with Brazilian poultry firm Céu Azul Alimentos to acquire two processing plants in Guapiaçu and Itapetininga, Paulo, for approximately BRL$246m ($110m).

The acquisition includes two feed mills and three incubators, with the plants offering a combined processing capacity of 330,000 birds per day, and licences to access the firm’s global customers.

Established in 1974, Céu Azul Foods produces and slaughters poultry, and also manufactures feed. It began exporting in 2001 and supplies markets in the European Union, Canada, Russia and South Africa.

JBS said the acquisition represents an important step in its strategy to increase its presence in overseas markets, in addition to strengthening its position in Brazil.

The deal is subject to the approval of the relevant authorities, including the Brazilian Antitrust Agency (CADE).

Last month, JBS Carnes began operating from a new chilled distribution centre, which it claims is one of Brazil’s largest. It is located in São Paulo on the Anhanguera Highway and covers 100,000 sq m, with the capacity to handle approximately 40,000 tonnes of cargo per month.

Gilmar Schumacher, logistics director, said: "We want to increasingly integrate processes in order to reduce operating costs and increase service quality for our clients."

The firm said the new centre will increase the efficiency of distributing products to its customers in São Paulo.