SAO PAULO (Reuters) – Brazilian food processor JBS SA said on Monday that it had completed the acquisition of its margarine and mayonnaise business from local unit Bunge, according to a securities filing.
The deal includes the purchase of three manufacturing facilities previously owned by Bunge located in the states of Santa Catarina, São Paulo and Pernambuco. Commodity trader and food processor Bunge agreed to sell margarine and mayonnaise assets in Brazil to JBS subsidiary Seara Alimentos in December last year.
JBS said at the time Seara would pay Bunge 700 million reais ($ 131.24 million) for the assets.
The acquisition gives JBS rights to brands including Delícia, Primor and Gradina, strengthening the company’s position in the margarine market in Brazil as well as its distribution capabilities, according to the archive.
JBS said the deal was expected to bring in an additional 1.2 billion reais of annual revenue to the Seara division. The acquisition is in line with the strategy to expand the product portfolio and higher value added brands.
Reporting by Ana Mano; Edited by Marguerita Choy and Sam Holmes