SAO PAULO – Marfrig Global Foods agreed to sell three meat refrigeration units and a livestock confinement facility in Argentina to Black Bamboo Enterprises SA, a subsidiary controlled by China’s Foresun Group. The transaction is valued at $75 million.
Under the terms of the agreement, Black Bamboo will take control of Marfrig’s refrigeration units in the towns of Hughes, Vivoratá and Unquillo. The livestock confinement unit is in Monte Ralo. However, only the Hughes unit is currently operating, the company said in a securities filing.
The transaction calls for an initial payment of $34 million, which already has been made, with the remaining balance to be paid within 12 months of delivery of the other units. Marfrig said the company will continue to operate a refrigeration unit in Villa Mercedes, Argentina.
“This transaction provides Marfrig greater focus to seek growth opportunities defined in its strategic plan ‘Focus to Win,’” the company said in a news release.
This latest divestiture is part of Marfrig’s plan to reduce its debt by $1.2 billion by the end of 2016. The company already sold poultry processor Moy Park Holdings Europe Ltd. to JBS SA; and in November 2015 the company announced negotiations to sell its Marfood beef jerky assets in the United States.