FDBusiness.com

Brazil-based JBS, which is the world’s largest meat processing company, is to sell its Moy Park business as part of a wider divestment programme of non-core and less strategic assets. Based in Northern Ireland, Moy Park is one of Europe’s largest poultry producers. It was acquired by JBS for $1.5 billion in September 2015 and became the central element of the Brazilian group’s European business. Moy Park had been previously owned by Marfrig Global Foods, another Brazilian food group, since 2008.

Janet McCollum, chief executive of Moy Park.

Janet McCollum, chief executive of Moy Park, comments: “Moy Park is a successful and growing food business with a solid financial standing. I have no doubt that our success is due to the great strengths of this business – our exceptional people, innovation and performance. I also know that this will ensure our continued growth and stability well into the future. Our priority remains business as usual – delivering outstanding quality, innovation and service to our customers and consumers.”

In addition to Moy Park, JBS also intends to sell its 19.2% shareholding in Vigor Alimentos and its Five Rivers Cattle Feeding assets and farms. The divestment programme is intended to reduce net debt and consequently strengthen JBS’ financial structure. The divestment programme is expected to result in a capital injection of approximately R$6 billion ($1.8 billion) in addition to the R$1 billion already announced by JBS with the sale of operations in Argentina, Paraguay and Uruguay.

The disposals have been prompted by JBS’s involvement in a series of corruption scandals which resulted in J&F Investimentos, the Batista family holding company that controls JBS and other assets, being fined a record R$10.3 billion ($3.1 billion) by the Brazilian authorities.