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Minerva Acquires Uruguay’s Frigorífico Carrasco

21 March 2014

URUGUAY - Brazilian meat processor Minerva SA has acquired Uruguayan company, Frigorífico Matadero Carrasco S.A. - Frigorífico Carrasco.

The deal is worth $37 million with $17 million paid in cash, $10 million will be paid on at the end of April next year and $10 million will be paid with 1,700,000 shares in Minerva SA .

The acquisition is subject to various conditions including the completion of a legal and financial due diligence audit.

Frigorífico Carrasco, a corporation based in Uruguay and owns a processing and cattle slaughter plant in Montevideo, and has the prominent brand in the domestic market.

The plant has the capacity to slaughter and debone 900 head of cattle a day.

Revenue for Frigorífico Carrasco for 2013 was approximately $140 million.

The domestic market accounted for one third of total sales.

The main export markets are the EU, China, Israel and NAFTA countries.

With the acquisition, Minerva will increase its capacity to approximately 2,400 head of cattle a day and will hold an 18 per cent share in the beef export market.

“We also believe in significant gains in synergy with our current Uruguayan plant at Pul, especially in administrative areas, cattle purchase and distribution channels,” said a spokesman for Minerva.

“The acquisition of Frigorífico Carrasco is another step in our investment plan, whose main focus is to increase our production capacity in South America, recognising the excellent time in the region for the production and marketing of beef.

“According to the USDA, Uruguay is now the 15th largest producer and 6th largest exporter of beef in the world, exporting to more than 40 countries and markets that Brazil today does not reach, such as the United States and Canada.

“Its herd is estimated at approximately 11 million head and there were approximately 2.23 million head of slaughter cattle in 2013.

“The beef consumption per capita of Uruguay is estimated at about 60 kg a year.

“The country is renowned for its strong integration of the beef production chain and is considered a benchmark in the relationship between production and the environment.”

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