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Company selling to reduce financial leverage after National Beef acquisition.
May 23, 2018
Brazil’s Marfrig Global Foods is moving forward with plans to sell its subsidiary Keystone Food as it seeks to reduce its financial leverage after the recent acquisition of a 51% stake in National Beef.
In a securities filing this week, Marfrig said five companies have qualified for the second phase of bidding. Sources familiar with the matter told Reuters earlier this month that Tyson, Cargill and Fosun International were among the interested parties.
Marfrig said the bidders will be allowed to access a data room and visit Keystone plants in the U.S. and Asia. The company also said it expects binding proposals in June.
Keystone Food, which is one of the largest international suppliers of industrialized foods to large restaurant and retail chains, operates 19 production units in the U.S., China, Malaysia, Thailand, South Korea and Australia. Together, these units have the capacity to process up to 250 million birds and manufacture 580,000 tons of food annually -- enough to serve a customer base that includes restaurant and fast-food chains such as McDonald's, Subway, Wendy’s, Iceland Foods and Campbell's.
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