SÃO PAULO, Brazil – JBS SA officials announced on Aug. 3 that it had sold its 19 percent interest in Vigor Alimentos SA, a large dairy business based in Mexico, to Grupo Lala S.A.B de C.V. for 1.12 billion reals ($361 million). JBS will receive approximately 780 million reals ($250.18 million) in equity value according to a statement.

“JBS intends to use a portion of the proceeds from this transaction to further reduce debt in connection with its Stabilization Agreement,” the company said, referencing its July 25 announcement regarding company debt. The deal was approved by the JBS board of directors and is subject to regulatory approvals.

Publicly traded on the Mexican Stock Exchange, Grupo LALA has a 60-year history and maintains operations in the US, Central America and Mexico with reported annual net sales of $2.9 billion for the 12-month period ending June 30, 2017.