Minerva set to become Brazil's second-largest beef processor

Minerva Foods has made a major move to strengthen its position in the beef market with the acquisition of cattle slaughtering and deboning plants from Marfrig for BRL 7.5 billion (approx. $1.53 billion).

This significant deal includes 11 plants and a distribution center in Brazil, one “industrial unit” in Argentina, three plants in Uruguay, and a lamb plant in Chile.

Minerva aims to leverage these acquisitions to drive protein diversification and gain a stronger foothold in niche markets with high added value. The acquisition will enable Minerva to increase its cattle slaughtering and deboning capacity to 42,439 head per day, representing a 44% increase from its current volume of 29,540 head.

The acquisition is a crucial step in Minerva’s strategy to expand its geographic presence, increase operational efficiencies, and tap into new markets. According to Fernando Queiroz, CEO of Minerva Foods, this acquisition “uniquely complements our operation in South America, which is one of the most competitive markets in the world.” The company plans to leverage its new assets to expand its ability to compete in the international animal protein market, reduce risks, and maximize commercial opportunities.

The acquisition makes Minerva the second-largest beef processor in Brazil, with a total of 40 cattle slaughter and deboning facilities comprising 21 units in Brazil, five in Paraguay, six in Argentina, six in Uruguay, and two in Colombia. Meanwhile, its lamb business will have five plants, including the new facility in Chile. The transaction is subject to analysis and approval by the relevant competition authorities.

Overall, this acquisition is a significant strategic move for Minerva, which is well positioned to leverage its new assets to expand its reach, enhance its product offerings, and tap into new markets. With a strong focus on operational efficiencies and international expansion, Minerva is poised for continued growth in the coming years.