Food and agriculture giant Cargill Inc has reached an agreement to acquire a majority share of Brazilian meat processor Seara Alimentos SA for about $130 million. The move is intended to give Cargill a meat sales presence in Brazil and increase its exports of pork and chicken.
Cargill plans to purchase 52.4 billion preferred and common shares in Seara for $2.48 per 1,000 shares, according to the Brazilian firm. The American company also plans to make an offer for the remaining shares in Seara and delist it, contingent on receiving approval of Brazilian regulatory authorities.
Seara has nine plants in the Brazilian states of Santa Catarina, Parana, Sao Paolo, and Mato Grosso do Sul.