JBS S.A. announced Aug. 3 that it has struck a deal to divest the totality of its 19.43% shareholding interest in Vigor Alimentos S.A. to Grupo Lala S.A.B. de C.V. for an enterprise value of approximately $1.112 billion reals ($357.44 million). It is estimated that JBS will receive an equity value of approximately $780 million reals ($250.6 million) after the closing of the transaction, subject to adjustments foreseen under the contract.

JBS had announced Aug. 1 that it was in advanced negotiations with Grupo LALA and that a meeting was to be held Aug. 3 between the two companies.

Grupo LALA, a publicly listed company on the Mexican stock exchange, is the largest dairy group in Mexico and one of the major producers in the Americas, with more than 60 years of history and operations in Mexico, the U.S. and Central America. Currently, Grupo LALA has a market cap of approximately $4.8 billion and posted net sales of approximately $2.9 billion in the 12 months ended June 30, 2017.

JBS said it intends to use a portion of the proceeds from this transaction to further reduce debt in connection with its Stabilization Agreement announced July 25, 2017.

The transaction was unanimously approved by the JBS board of directors and is subject to the usual regulatory approvals and further adjustments common to these types of operations.

Any facts regarding this matter considered relevant will be promptly disclosed to the market, JBS said.