VIGOR Alimentos S.A. has reported an agreement with Cooperative Central dos Produtores Rurais de Minas Gerais Ltd. and Itambe Alimentos S.A. in which Vigor will acquire a 50% interest in Itambe.
Vigor is a Brazilian dairy processor that was established when JBS S.A. acquired Bertin S.A. three years ago (Feedstuffs, Jan. 11, 2010).
Itambe handles milk produced through 31 cooperatives in the states of Goias and Minas Gerais in northeastern Brazil. The cooperatives pool milk from 8,000 dairy farm families in the two states.
The deal represents an investment of 410 million reals ($207.2 million) and is subject to customary closing conditions, including regulatory review and Vigor stockholder approval, according to the announcement.
Itambe plans to assign proceeds to debt repayment and expansion of production capacity, the announcement said.
Vigor said it sees its interest in Itambe as an important strategic entrance into northeastern Brazil.