BRF - Announcement to the Market

Oct 03, 2011, 18:52 ET from BRF - Brasil Foods S.A.

SAO PAULO, Oct. 3, 2011 /PRNewswire/ -- BRF – Brasil Foods S.A. (NYSE: BRFS; BM&FBOVESPA: BRFS3), acting in accordance within the terms of Instruction No. 358 of the Brazilian Securities and Exchange Commission (CVM) of January 3, 2002 and § 4 of art. 157 of Act No. 6.404/76, announces that it has acquired, through its subsidiary in Argentina, corporate control of the company Avex S.A. and, through this company, has acquired the companies Flora Danica S.A, and Flora San Luis S.A. and GB Dan S.A.(Grupo Danica), both of which are headquartered in Argentina.

In line with BRF's strategic plan to internationalize the company, these acquisitions have a common objective to strengthen BRF's brands in the Mercosur region, with expansion of portfolio of products, access to local markets and expansion of export platform.

The Danica Group has a broad distribution structure for dry and chilled/frozen products which will allow BRF to complement its sales and distribution structure, as well as export of products to the Southern Cone and development of Food Service channel. The company is the leader in the margarines market (62%) and number two in sauces (20%).

The company is located in Buenos Aires and operates with the following main brands: Danica, Manterina, Vegetalia, Danifesta and Primor. Revenues of US$ 122.7 million in 2011 and sales of 68.3 thousand tons, with 689 employees

Danica – Industrial units


Capacity (ton/month)

Margarines and Oils



Sauces and Mayonnaise

Villa Mercedes


Pastas and Pastries



Avex is a company located in Rio Cuarto, Cordoba, and produces whole, cut, chilled and frozen chicken. Revenues of US$ 66.8 million in 2010, with 70% of sales concentrated in the domestic market. Sales amounted to 41.5 thousand tons with 494 employees in total. Avex is the sixth-largest player in the domestic poultry market, with a market share of 4% in Argentina.

Avex - Industrial units



Poultry Slaughtered

Rio Cuarto, Cordoba

750,000 poultry heads /week


Juarez Celman, Cordoba

40 ton/hour


General Deheza, Cordoba

758,800 eggs/week

Granja de Terminacao/ Termination Poultry Farm

Rio Cuarto, Cordoba

164,000 own area

155,700 m2  integrated area

Total investments for both acquisitions will amount to approximately US$ 150 million, with two third of ownership by BRF and one third by other local shareholders. Transaction will be supported with BRF´s own financial resources. Avex will have a shareholders´ agreement, that it will determine the form of management of the company.

Currently, BRF operates in the Argentinean market with exports of processed and fresh products, particularly under the Sadia brand, to distributors, mainly in the Buenos Aires region. The Mercosur project will bring BRF the opportunity to consolidate its position as a player in Latin America, with a stronger brand, access to local clients, and an expanded distribution structure and broader competitive base for exports.

Leopoldo Viriato Saboya Chief Financial, Administration and Investor Relations Officer

SOURCE BRF - Brasil Foods S.A.