Brazil’s BRF closes agreement to buy Hercosul and advances in pet food segment

RIO DE JANEIRO, BRAZIL – BRF food company (BRFS3) on Friday, June 18, reported that its subsidiary BRF Pet closed a deal to acquire the Hercosul group, which operates in dry and wet food for dogs and cats, placing the company on the path to become one of the main players in this market.

The transaction value is subject to the adjustments set forth in the purchase and sale agreement and will be announced when the deal is closed, BRF added, explaining that the transaction has been approved by the Board of Directors and does not depend on shareholder approval, since it will be conducted through its subsidiary BRF Pet.

“In line with the ‘Vision 2030’ plan, this move strengthens the company’s business generation and diversification… and the closed deal represents an effective step for BRF to become one of the largest and most relevant market players,” the company said.

The Hercosul group has been in the pet food market for 20 years, owning a set of companies headquartered in Brazil, dedicated to the development, production and distribution of dry and wet food for dogs and cats.

According to BRF, Hercosul has a “solid growth history in this market, launching innovative products recognized for their quality, safety and performance.

With deal, BRF will become one of the largest players in this type of ration, with a market share of approximately 4%, according to estimates based on data provided by the Brazilian Pet Products Industry Association.

The transaction is subject to the approval of the Brazilian competition bodies and the verification of other precedent conditions typical in transactions of this nature.