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BRF to acquire half of gelatin and collagen company

Gelprime is now jointly owned by Viposa Participações, Indústria e Comércio de Couros Britali and Vanz.

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Brf
Courtesy BRF

BRF has offered to acquire a 50% stake in Gelprime, a company that produces, sells and distributes gelatin and collagen through the processing of animal origin raw material.

According to an announcement to the market that can be found on the BRF investor relations website, BRF, through MBR Investimentos, a company controlled by BRF, signed a term sheet with the three companies that currently hold 100% of Gelprime. Those companies are Viposa Participações, Indústria e Comércio de Couros Britali and Vanz Holdins.

The term sheet establishes the main conditions for the acquisition, by MBR, of 50% of Gelprime capital stock for the value of BRL312.5 million (US$50.5 million), subject to possible adjustments.

In the announcement, BRF describes this potential transaction as part of the company’s strategy to have increased value-added products in the portfolio, enabling profitability expansion and business diversification. BRF also said the availability of raw materials is a competitive advantage in this market.

The announcement is signed by BRF Chief Financial and Investor Relations Officer Fábio Luis Mendes Mariano and dated December 17.

The closing of the transaction is subject to the negotiation and execution of the definitive documents and the approval by the Brazilian antitrust authorities.

BRF, according to information from the WATTPoultry.com Top Poultry Companies Database, is the third largest poultry producer in the world, involved in both broiler and turkey production. During the past year, BRF produced 1.67 billion broilers. The company is also a major pork producer.

BRF is also the world’s 14th largest feed company, having produced nearly 9.6 million metric tons of feed during the past year.

BRF rating improves

On the same day BRF announced the proposed Gelprime transaction, it also announced that credit ratings agency Standard & Poor’s updated BRF’s outlook from “stable” to “positive” and reaffirmed the company’s global rating at “BB” and local rating at “brAAA.”

The upgrade, BRF said, is mainly a consequence of the continuous improvement in the company’s profitability, recent efficiency measures and debt reduction.

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