Brazilian meatpacking giant JBS has bought a 50% stake in Italian beef processor Inalca, a unit of Cremonini, for €225 million (about $330 million).
Inalca supplies beef to McDonald’s across Europe, with exclusive contracts in Italy, Greece, Denmark, Cyprus and Russia. According to ceo Joesley Mendonça Batista, ‘This is a strategic opportunity for JBS,’ adding that the purchase gives the company entry into Europe, Russia and Africa. As part of the deal, JBS bought 50% of Inalca’s €300 million ($440 million) debt.
Inalca´s daily slaughter of 3,500 head of cattle per day will put JBS’ total up to 55,300 cattle and 47,900 hogs across the United States, Brazil, Australia, Argentina and now Italy.
JBS earned export revenues of $1 billion between January and November, compared to revenues of $992,000 in 2006. ‘Our expectation is to have $1.1 billion in revenues by the end the year,’ Batista stated, adding that for 2008, he expects a 25 to 30% increase in revenues and a 15-20% increase in export volume.