Independencia goes international
20/06/2008
Frigorifico Independência has signed an agreement to acquire Paraguayan Frigorifico Guarani, marking the start of an international expansion for the meat packing company.
"The deal is for $14 million and that includes the brand," said Tobias Bremer, financial director for Independencia, on making the announcement. "We expect to complete the acquisition process during the next quarter."
According to Mr Bremer, entry into the Paraguayan market is a strategic move because today Paraguay is the largest exporter of beef to Chile. The Chilean market has been closed to Brazilian beef since the end of 2005, except for beef produced in the state of Rio Grande do Sul. Independencia also sees exporting potential to Europe through Paraguay.
The Guarani unit, which is located in Asunción, slaughters 500 head per day, that is, 10% of the country's daily slaughter.
"The deal is for $14 million and that includes the brand," said Tobias Bremer, financial director for Independencia, on making the announcement. "We expect to complete the acquisition process during the next quarter."
According to Mr Bremer, entry into the Paraguayan market is a strategic move because today Paraguay is the largest exporter of beef to Chile. The Chilean market has been closed to Brazilian beef since the end of 2005, except for beef produced in the state of Rio Grande do Sul. Independencia also sees exporting potential to Europe through Paraguay.
The Guarani unit, which is located in Asunción, slaughters 500 head per day, that is, 10% of the country's daily slaughter.
Mr Bremer added that his company would be interested in making other acquisitions outside Brazil if the opportunity arose.
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