LAVCA VC
  • News Feed
  • VC Data
  • Directories
  • Features
  • Tech Growth Coalition
  • LAVCA Gender Diversity
  • Engage
    • VC Council
    • VC Members
  • LAVCA
  • Member Login
  • Member Access

LAVCA VC

  • News Feed
  • VC Data
  • Directories
  • Features
  • Tech Growth Coalition
  • LAVCA Gender Diversity
  • Engage
    • VC Council
    • VC Members
  • LAVCA

Lindsay Goldberg Selling Keystone Foods for $1.26 Billion

15 June 2010

(Reuters) June 15, 2010 – Brazilian processed foods company Marfrig Alimentos SA said it reached an agreement to buy major U.S. distributor Keystone Foods for $1.26 billion, in a bid to expand as a supplier to some of the world’s largest restaurant chains.

Under terms of the agreement, Sao Paulo-based Marfrig plans to buy 100 percent of Keystone’s shares from Lindsay Goldberg LLC, a U.S. private equity firm. The Brazilian company, which has expanded through acquisitions in the past two years as rivals were put up for sale following the global recession, would issue debt convertible into stock to pay for Keystone’s takeover.

“This acquisition raises Marfrig to an outstanding position as a supplier of the whole international chain of McDonald’s, Campbell’s, Subway, ConAgra, Yum Brands and Chipotle,” Marfrig said in a regulatory note late on Monday.

The takeover comes as Marfrig struggles to integrate food processor Seara into its business, which focused originally on meatpacking.

Shares of Marfrig have tumbled 17 percent this year, compared with a 6 percent drop in the benchmark Bovespa index, underscoring investors’ concerns that its recent acquisitions might not bring about the expected strategic advantages for the company.

Shares of Marfrig were down 2.9 percent to 16.37 reais on Tuesday, the biggest intraday tumble since May 25.

“The announced acquisition could raise execution risk at Marfrig, which is already highly leveraged, is going through an integration process with Seara, and is not generating positive cash flows,” wrote Goldman Sachs analysts Gustavo Wigman and Claudio Lensing in a note to clients. Both analysts are recommending investors sell Marfrig stock.

Marfrig is the latest Brazilian food company to expand abroad, tapping growing demand for protein in China and India, the world’s most populous countries. Brazilian companies are also stepping up takeovers in the United States, where company valuations remain low after the deepest economic recession since the 1930s.

Brazil’s JBS SA, the world’s biggest meat processor, bought a 64 percent stake in bankrupt U.S. chicken producer Pilgrim’s Pride Corp for $800 million last year.

Marfrig said in the filing that adding the resources and management of Keystone would enable it to expand its operations and better meet the opportunities for growth in the global food market.

The takeover is subject to the approval of antitrust agencies, Marfrig said, adding that it expects to seal the transaction during the second half of 2010.

By Stuart Grudgings and Guillermo Parra-Bernal

Lindsay Goldberg Selling Keystone Foods for $1.26 Billion was last modified: June 18th, 2010 by Editor
BrazilDealFoodPrivate Equity
0
Facebook Twitter Google +

Tech Growth Membership

The 2023 LAVCA Startup Founders Survey is made possible thanks to the support of LAVCA’s Tech Growth Membership, a group of leading tech companies and investors advancing the tech ecosystem in Latin America including AWS, Mercado Libre, Microsoft, Qualcomm Ventures, SVB, Riverwood Capital, Google and Movile.

VC Partner Events

    Tweets

    • Congratulations to all the winners of the 9th annual LAVCA ESG Deal Awards! Learn more about the winners here:… https://t.co/VSLSO2QDkU

      25-May-2023

      Reply Retweet Favorite
    • Join us at 10 am ET for LAVCA's 9th annual ESG Deal Awards! Join here: https://t.co/idTeK2S6lK #investors #LatAm… https://t.co/bbCEAOfjtd

      25-May-2023

      Reply Retweet Favorite
    • Nicolas Szekasy and Francisco Alvarez-Demalde of LAVCA Member firms @KaszekVentures & Riverwood Capital shared thei… https://t.co/GtxubjgCYD

      22-May-2023

      Reply Retweet Favorite
    • The 9th Annual LAVCA ESG Deal Awards will take place next Thursday, 25 May 2023 at 10 am ET on LinkedIn. LAVCA Mem… https://t.co/NpRQSoZgkJ

      18-May-2023

      Reply Retweet Favorite
    • Join us for "Increasing Participation of Women in Private Capital", the next module in the Inside Private Capital e… https://t.co/eQm8BFtlFg

      16-May-2023

      Reply Retweet Favorite

    Submit VC News

    Have private equity or venture capital related news that you would like to share? Submit your press releases and news to [email protected].

    VC Industry News

    • Index Ventures leads USD26m Round for Latin America’s Liquido

      17 May 2023
    • ALIVE Ventures and Reinventure Capital Lead USD3.5m Seed Round for Colombia’s BeeReaders

      3 May 2023
    • BAI Capital Leads USD10m pre-Series A for Galactic Holdings

      2 May 2023
    • Alaya Capital, FJ Labs, Mr. Pink and Opera Ventures Invest in Argentina’s Teamcubation

      30 April 2023
    • KASZEK and Riverwood Capital To Exit Argentina’s Gointegro

      26 April 2023
    • L Catterton Invests in Mexico’s Ben & Frank

      26 April 2023
    • GGV Leads USD60m Series B+ for Mexico’s Clara

      26 April 2023
    • Arce Venture Partners Leads USD12m Series A for Brazil’s Arado (formerly Clicampo)

      25 April 2023
    • Cloud9 Capital and Mercado Libre invest in BRL110m round for Cilia

      25 April 2023
    • Victory Park Invests USD100m in Colombia’s Habi

      19 April 2023

    About LAVCA

     

    LAVCA is the Association for Private Capital Investment in Latin America, a not-for-profit membership organization dedicated to supporting the growth of private capital in Latin America and the Caribbean through research, education, networking and advocacy.

    LAVCA Office

        New York City:
        589 8th Ave, 18th Floor
        New York, NY 10018

    Explore LAVCA.org

    • About LAVCA
    • Board, Team, & Advisors
    • Media
    • Contact Us
    • Membership Benefits
    • Members Only Access
    • Education and Programs
    • Research
    • Policy
    • LAVCA VC
    • Contact Us

    @2020 - LAVCA. All Rights Reserved.


    Back To Top