São Paulo – BRF announced this Monday (4th) it has made a takeover bid for 75% of the shares in Kuwaiti food distribution company Alyasra Foods. The transaction will have to go through the Arab country’s laws, and, if approved, may reach a total of US$ 160 million.
Alyasra Foods is BRF partner in Kuwait for 20 years. It distributes the Brazilian company’s products, which include the brands Sadia and Perdigão, and also other company’s products. Alyasra is a leading distribution company in Kuwait and, according to the communiqué released by BRF to the market, operates in the sectors of frozen, chilled and dried food.
BRF bid does not provide for the acquisition of Alyasra’s food service sector, which delivers to hotels and restaurants. In this case, BRF will be the supplier of the products which already belong to the Arab company’s portfolio.
In the communiqué, the Brazilian company says that the acquisition of the Kuwaiti company is “in line with BRF strategic planning”, which is to globalize the company and expand its product offering in Middle East. “BRF is strengthening its presence in the state of Kuwait as part of a larger commitment to this market,” states the communiqué.
This Monday at 1:36pm (BRT), the company’s shares at Bovespa) were selling at R$ 57.16 (US$ 25.26 at current exchange rates), down 0.16%.
Other business
The Arab company acquisition is part of other business of the food processing company in the Gulf countries. BRF already has a strong presence in the region, mainly with the brand Sadia. The company is building a factory in Abu Dhabi, where it has taken over Federal Foods, the company which distributes Sadia products in the United Arab Emirates, in April.
In Oman, the company had made a deal to own 40% of the local distributor of Sadia. BRF is negotiating a share of Americana, Kuwaiti retailer which also runs restaurants.
*Translated by Rodrigo Mendonça
